Shares of LeapFrog Enterprises (LF) have been under pressure for the past few days after the company announced a lower than expected price for it?s new Learning Tablet.
LF is off 30% since August 28th and 15% since the announcement. Today, shares are trading lower by 6.67%, at $8.54.
Options traders are buying puts on the name today. A short while ago, the December $7.50 put was purchased 2,850 times, on the offer, for $0.85. Open interest on the strike is 10,740 contracts.
The March 2013 $7.50 put is also active; volume has totaled just over 1,000 contracts (open interest of 173), with the majority of the action being sales at $1.20-1.50.
Overall put volume is running at 5,767 contracts, over 6x normal volume. This is the second trading day in three sessions that put volume has been extraordinarily high.
LeapFrog Enterprises, Inc. is a developer of educational entertainment for children. The company’s product portfolio consists of multimedia learning platforms and related content and learning toys.?