Puts Purchased on Ares Capital Corporation (ARCC)
January 19, 2011 3:20 PM
Shares of Ares Capital Corporation (NASDAQ: ARCC) are lower on the session by 4.17%, currently trading at $16.38. The stock had been moving largely sideways over the past three months, but recently came under selling pressure and is now trading below the 50-day moving average.
Options traders are buying puts on the name today. A short while ago the January 2011 $16.00 put was purchased 2,000 times, on the offer, on open interest of only 475 contracts. This signals new positioning on the name.
Overall put volume is now running at 20.24x the daily average with 98% of all puts traded being purchases on the offer.
Ares Capital Corporation is a specialty finance company, which is a closed-end, non-diversified management investment company. Ares Capital's investment objective is to generate both current income and capital appreciation through debt and equity investments.
