Stocks quoted in this article:
Remedy (RMDY – 16-9/16) makes help-desk software. The company's clients include eBay, Nike, and Minnesota Mining & Manufacturing. On July 26, the equity plunged roughly 20 points, or nearly 45 percent, on several brokerage downgrades following a second-quarter earnings announcement. The firm topped analysts' estimates in terms of earnings per share, but failed to meet revenue projections.
Since that fateful day over two months ago, RMDY has failed to overcome this bear gap and declined to a new annual low yesterday. The equity is continuing to trade below all significant short-term and long-term moving averages.
Today, RMDY is seeing some notable activity in the options pits, as the equity's October 15 put is the most-active put trading today on the CBOE. Exactly 10,000 contracts have traded at this strike, which was previously home to only 2,000 contracts. Just before 11:30 a.m., blocks of 9,000 and 1,000 contracts traded in rapid succession. The larger block was executed between the bid and the ask prices, while the 1,000-contract block traded off the ask. Additionally, 2,000 contracts have changed hands on both the October 17-1/2 and October 25 puts. Call activity is sparse today.