Dell Puts Seeing Unusual Activity

Computer maker Dell Inc. (NASDAQ: DELL) shares set a new 52 week low of $11.39 on Thursday and bearish put contracts have seen six times the average volume change hands so far today.

More than half of the volume has been in the slightly out of the money September 10 strike puts with 28,000 contracts traded on the day. Multi exchange sweeps of of 8,500 and 6,500 contracts at $0.24 and $0.21 respectively have been the largest trades, pushing implied vol up as high as 48 percent.

With the company slated to release its earnings in a few weeks, todays put buyers are either placing bets that the shares will continue to slide below the $10.00 level or looking for short term downside protection for a long equity position.

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