Puts Purchased in Xerox

Shares of Xerox Corp. XRX are trading flat today, currently at $10.10. The stock recently broke through the 50-day moving average to the downside, retested, and failed to regain the average. This is a bearish signal for Xerox. Options action is favoring the puts today. In May, the $10 put saw trading of over 24,000 contracts, though this was mostly position closing as open interest was over 30,000 contracts. The real action was on the June $9 put line, where 14,000 put were purchased on the offer for $0.18. open interest on the strike was only 316 contracts, indicating new, bearish positioning.