Stocks quoted in this article:
Yesterday evening, Harmonic (HLIT – 14-3/4) said that it expects to report a pro forma loss of six to nine cents per share for the third quarter, which is well below analysts' estimates of a 12-cents-per-share profit. The company also said that it will likely report a loss in the fourth quarter, while the Street had expected earnings of 14 cents per share.
The stock has plunged over 34 percent on this news to hit its lowest level since April 1999. HLIT is in the midst of a intermediate-term collapse that has seen the shares relinquish 90 percent of their value since their early-March all-time high.
In HLIT's options pit, spread trades have been initiated using the October 17-1/2 and October 30 puts. The October 17-1/2 put, which had no open interest coming into today, has seen 2,825 contracts cross the tape. Over 3,000 contracts have traded on the October 30 put on open interest of 3,682 contracts.