Puts Sold on Rosetta Stone (RST)

Shares of Rosetta Stone Inc.

are lower on the session by 13.79%, currently trading at $22.00. The stock is off sharply today on word that its COO is resigning from the company. The company’s guidance also fell short of traders’ expectations. Options traders are selling puts on the name, betting that the stock may be near a bottom. Though action has been primarily in small lots, put volume is now running at 7.75x the daily average with the vast majority of transaction being sales. Traders are selling the $22.50 and $20.00 put in multiple months. Rosetta Stone Inc. is a provider of technology-based language learning solutions. The company develops, markets and sells language learning solutions consisting of software, online services and audio practice tools primarily under its Rosetta Stone brand. Its teaching method, called as Dynamic Immersion, is designed to use the innate, natural language learning ability that children use to learn their native language.