Notable Put Options Activity on Rackspace Hosting

Shares of Rackspace Hosting

are higher on the session by 0.60%, trading at $43.57. The stock has been moving largely higher over the past three months and is currently trading above the 50-day moving average. Options traders are focusing on puts today. The strike seeing the heaviest action is the February 2012 $36.00 put, which has traded 6,000 times on open interest of 103 contracts. The Feb2012 $42.00 put also traded 5,000 times on 16 contracts. This action stems primarily from a 5,000 contract put spread, purchased for $1.55. Put volume is outpacing call volume by 129 to 1. Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide.