Puts Active as Longtop Financial Technologies Slides (LFT)
Shares of Longtop Financial Technologies (NYSE: LFT) are moving lower this morning, currently off by 2.00%, trading at $25.03. Shares touched a low of $22.92 after the opening bell before rallying.
This has sparked an influx of put buying in the name this morning. So far, 8,000 puts have traded versus only 2,000 calls. Today's action already equals to daily average put volume.
The vast majority of the action is coming in the front month, on the $25.00, $22.50, and $20.00 strikes, where puts are being taken down on the offer in size.
While put buying in LFT in not a new phenomenon, options traders seem to be voicing the opinion that shares will continue to make fresh 52-week lows over the next new weeks.
Longtop Financial Technologies Limited together with its subsidiaries provides a range of software solutions and services to the financial institutions in the People's Republic of China, including the development, licensing and support of software solutions, the provision of maintenance, support, and other services, and system integration services related to the procurement and sale of third party hardware and software.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.