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.
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