SouFun has been cut nearly in half since early March, but traders are expecting a floor to hold in shares of the Chinese Internet real-estate company.
Almost all of today’s option action is in some 6,000 August 10 puts, which are being sold aggressively across exchanges for $0.60, below the listed bid price. The volume is above previous open interest of 4,139, so this was new positioning.
The put sellers are looking for SFUN to stay above $10 for the next month. The traders will be on the hook to buy shares if they fall below that level, but that might be part of the strategy.
— Option Monster