Puts Pop After Restaurant Stock Hit With Bear Notes

Darden Restaurants Inc (NYSE:DRI) has been steadily declining on the charts since the start of the month. Now, though the 12-month consensus price target of $82.44 is still a 16.8% premium to current levels, analysts are starting to shift their positions. DRI received price-target cuts from both Wedbush and RBC to $88 and $81, respectively. Currently,15 out of 24 analysts maintain a "buy" or better rating, so even more bear notes could be a possibility. Currently, the stock is up 0.5% at $70.64.

Turned away by their 160-day moving average in early June, Darden shares have now racked up a 35% year-to-date deficit. Since that rejection, DRI has turned in two weekly deficits of 7.5% and 11.3%, retrospectively. Longer term, the Olive Garden parent's Sept. 13 record highs of $128.41 now seem like a distant memory.

Today marks a sentiment change in the options pits as well. In the past 10 days, almost three times as many calls have been bought at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Today, however, 4,931 puts have crossed the tape so far, four times what's typically seen, compared to 4,407 calls. Most popular today so far is the July 75 call, where new positions are being opened.