Near Term Bearish Action In Pandora Put Options
Shares in Pandora (Ticker: P) are taking a beating today, off 12.5% at $26.05 in the final hour of trading amid an ugly day for equities. Shares in the internet radio company have fallen 35% in the past five weeks since trading up to a record high of $40.44 on March 5th. Options changing hands on Pandora this afternoon suggest some traders are bracing for the selloff in Pandora to continue in the near term.
Upwards of 5,000 puts traded at the 17Apr?14 $25 strike against open interest of 1,266 contracts. Time and sales data suggests most of the volume was purchased just after 1:30 p.m. ET today for an average premium of $0.43 per contract. Put buyers may profit at expiration next week in the event that Pandora?s shares slide 5.7% from the current price of $26.05 to breach a breakeven price of $24.57. Shares in Pandora last traded below $24.57 back on October 14th.
———————————————————————————————
Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.