Conn’s last earnings report was a stinker, and the bears are bracing for another setback.
optionMONSTER’s Depth Charge monitoring system detected the purchase of 2,000 December 55 puts for $3.65 and the sale of a matching number of December 45 puts for $1.05. Volume exceeded open interest at both strikes, indicating that new positions were initiated.
Known as a bearish put spread, the trade cost $2.60 and will expand to $10 if the electronics retailer closes at or below $45 on expiration. That would be a profit of 285 percent.
— Option Monster