Bearish play in Texas Instruments

Texas Instruments is regaining ground lost yesterday along with other chip makers, but traders are positioning for another leg lower.

optionMONSTER’s Depth Charge system shows that almost 4,000 April 44 puts have traded this morning, most of them bought for the ask price of $2.40. These are clearly new positions, as open interest in the strike was just 127 contracts before the trades appeared.

The puts are not tied to any corresponding stock trades identified by our systems today. And given that these contracts are in the money, they are very likely an outright bearish play rather than a hedge on an existing long position.

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