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Omnivision Technologies (OVTI - 13.83) saw an influx of put activity on Monday, as more than 3,700 of these options changed hands, which was more than double the equity's average daily volume. Most of the action occurred at the near-the-money February 13 strike, where close to 3,000 puts were traded -- over half of them at the bid price, suggesting they were sold. Open interest on this option jumped by 2,690 contracts overnight, signaling the initiation of new positions. This strike now holds peak put open interest of 3,201 contracts. By selling these puts to open, investors are betting that the stock will linger above the $13 mark through front-month options expiration.
This increase in put volume seems to be part of an ongoing trend for OVTI. The Schaeffer's put/call open interest ratio (SOIR) checks in at 1.13, indicating that puts comfortably outnumber calls among options expiring within three months. In fact, this ratio ranks in the 94th percentile of its annual range, confirming that short-term options players have been more bearishly slanted toward the stock just 6% of the time during the past year.
Technically speaking, OVTI has added more than 13% this month alone, but has underperformed the broader S&P 500 Index (SPX) by almost 24% during the past 60 sessions. A look at the charts shows that the stock is currently testing resistance at its 20-week moving average, a trendline it has not topped since late July.
In the morning hours of the session, the equity is up about 1.6% to trade at $13.83.