Shares of Emulex (ELX) aretrading lower on the session by 0.98%, at $7.06.? The stock has been basing above the $6.00level for the past three months, recently rallying above the 20-day and 50-daymoving averages.
Yesterday, there was a flurryof activity in the puts; volume eclipsed 2.3x the average daily volume by theend of the session with 2,166 contracts traded.
The majority of the actionstemmed from a 2,051 contract sweep that traded on the Oct $6.00 strike.? The trades went off on or near the offer, at$0.20. Open interest on the put was 3,188 contracts at the time; looking at theadjustment to OI today, now 2,878 contracts, we can determine that there was amix of opening and closing positions.
Current overall implied andhistorical volatility is registering 42% and 58%, respectively. At $0.20, theOctober $6.00 put traded at 57% vol.
Emulex Corporation is a provider of a range of network convergencesolutions that connect servers, storage, and networks within the data center