Schaeffer's Trading Floor Blog: Trader Pick Up Puts on Staples Ahead of Earnings

CINCINNATI--(Business Wire)--
Staples (NASDAQ: SPLS) was the center of some heavy put trading on Tuesday ahead
of the company's earnings report this morning. Yesterday, the stock traded 4,156
put contracts, which is more than four times the security's average daily
trading volume of 971 contracts.

Digging into the action in the front-month series, the June 21 put added more
than 1,500 new positions, while the June 20 put saw its open interest by roughly
900 new positions.

This preference for puts runs counter to the recent trend we have seen on the
International Securities Exchange (ISE). During the past 10 trading sessions, an
average of 2.44 calls have been purchased to open for every one put purchased to
open. This 10-day call/put volume ratio is higher than 85% of all those taken
during the past 12 months, pointing to a lingering optimism toward the shares.

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Schaeffer's Investment Research
Jocelynn Drake, 513-589-3800
jdrake@sir-inc.com

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