Big Prints In Janus Puts As Shares Slide
Shares in Janus Capital Group Inc. (Ticker: JNS) fell to the lowest level since January 3rd on Thursday after the asset manager?s fourth-quarter earnings report and conference call. Shares in Janus are currently down 7.8% on the session at $11.98 as of 12:30 p.m. EST amid a down day for US equities.
Heavy volume in JNS put options this morning suggests one trader may be bracing for further declines in the price of the underlying during the first half of 2014. Average daily options volume on Janus over the prior 10 trading sessions is roughly 220 contracts, but today more than 12,000 contracts have changed hands on the name. The bulk of the activity is in the Jun $12 strike puts, where more than 10,000 contracts traded this morning.
Time and sales data suggests most of the puts were purchased at a premium of $1.20 each. The put position makes money if shares in JNS decline 10% from the current level of $11.98 to breach the breakeven point on the downside at $10.80 by June expiration. Shares in Janus Capital Group last traded below $10.80 in mid-December of 2013.
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