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Cirrus Logic, Inc. (CRUS) Hammered with Heavy Put Volume

CRUS bears are taking to the option pits amid today's swoon

by 11/11/2013 11:24 AM
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Option Brief: Put volume has exploded today on Cirrus Logic, Inc. (NASDAQ:CRUS), with roughly 12,000 contracts crossing the tape so far. That figure easily surpasses the stock's average single-day put volume of 4,312 contracts. Meanwhile, only 7,633 calls have changed hands on CRUS.

Today's action is a change of pace for CRUS, as traders generally prefer calls on the tech stock. During the past 10 sessions, speculators have bought to open 2.43 calls for every put on the shares, according to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio arrives in the 47th percentile -- right near the middle of its annual range, suggesting the current skew toward bullish bets over bearish is simply business as usual for CRUS.

The sudden interest in put options is likely due to a short-selling halt on Cirrus Logic, Inc. (NASDAQ:CRUS). However, with the stock down 11.6% at $19.67, some of these traders could also be taking profits. The most active strike is the comfortably in-the-money November 25 put, and most of the 3,208 contracts traded here have crossed at the bid price -- suggesting they were sold.

The sharp sell-off was prompted by an analyst note from Barclays this morning, with the firm warning that the new iPad Air from Apple Inc. (NASDAQ:AAPL) doesn't feature a Cirrus Logic audio amplifier, unlike previous versions of the tablet. Following this troubling news, CRUS opened today's session by gapping below support at its 80-day moving average, which cushioned the stock's post-earnings pullback in late October.


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