Unusual Options Activity Alert: Large Put Roll in SFI

• An underlying holder appears to have rolled a substantial protective put position in SFI today. The trader sold 25,000 Jan 2013 5 Puts for $.60-$.65 and bought 25,000 Jan 2014 5 puts for $1.25-$1.30.

• Existing open interest on the Jan 2013 5 puts indicates that the trader may own 6.5 million shares of the underlying. If this trader rolls his entire position, then we expect another 40,000 puts to trade in the coming sessions.

• SFI HAD A BROAD RANGE OVER THE PAST TWO YEARS, RANGING FROM $2.88 BACK IN 2010 TO $10.30 EARLY LAST YEAR. SFI HOVERED BETWEEN $5-$8 FOR MOST OF THE PAST YEAR.

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Compiled by The Options Insider staff.