Schaeffer's 43rd Anniversary Stock Picks in 2024

Traders Bet Two Ways on Zebra Technologies Corporation (ZBRA)

Zebra Technologies Corp. (ZBRA) is fresh off a record high of $106.92

May 13, 2015 at 1:35 PM
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Zebra Technologies Corp. (NASDAQ:ZBRA) is among the biggest gainers on the Nasdaq, up 10% at $103 on better-than-expected first-quarter results. In fact, shares of the asset intelligence company earlier raced to a record high of $106.92. However, a number of option bears foresee a retreat back into double-digit territory for the stock.

Diving right in, ZBRA puts are crossing at 10 times what's expected at this point in the session. A sizable portion of the activity is transpiring at the June 100 put, where contracts are being bought to open. In other words, these skeptics predict the equity will slip below $100 by the close on Friday, June 19, when back-month options expire.

Of course, not everyone today has been bearish toward ZBRA. The May 105 and June 110 calls are seeing buy-to-open action, as speculators wager on additional upside through the respective expiration dates.

Longer term, call buying has been the more popular of the two strategies in Zebra Technologies Corp.'s (NASDAQ:ZBRA) options pits. Specifically, during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open nearly 1,200 calls, compared to roughly 110 puts.
 

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