Shares of Seagate Technology (STX) are trading lower on the session by 2.95%, at $32.60. Given the S&P500?s current decline of 0.55%, STX is underperforming quite notably when adjusted for beta. The stock touched a 12-month high of $35.71 back on August 17th.
Options traders are active in the puts in today. The heaviest action is coming on the August 31st weeklies, which expire this at the close this Friday. One trader bought 4,000 $33 puts, on the offer, for $0.71 and sold 2,000 $35 puts, near the bid, for $2.50.
Given the respective open interest of 608 and 2,086 contracts, this looks to be a roll. The trader is thus taking profits on his or her long puts, while leaving some money on the table for an unexpected push lower into the end of the week.
The next largest trade has been the sale of 1,500 September $35 puts, on the bid, for $2.71-2.73. Given open interest of 8,509, this looks closing. Note that, while the Sept $31 put is also active, there was not an immediate roll from the $35 strike here; volume has consisted solely of small lots?
Seagate Technology is the provider of electronic data storage products. The company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs.