Join        Login             Stock Quote

Jamba, Inc. (JMBA): Put Buyers Take To Jamba As Stock Slides

 October 08, 2013 05:23 PM

JMBA – Jamba, Inc. – Shares in the operator of Jamba Juice stores dropped more than 20% to $10.45 on Tuesday morning after the company lowered several of its estimates for 2013, citing a slowdown in consumer spending, adverse weather in key markets and increased competition, according to a press release available on Jamba's investor relations site. The stock was cut to ‘Market Perform' from ‘Outperform' with a 12-month price target of $12.00 at Northland Securities and was lowered to ‘Neutral' from ‘Buy' at Dougherty & Co. today.

Options volume on the stock is up sharply today, with around 2,300 contracts in play versus average daily options volume of around 130 contracts. Trading in JMBA puts is outpacing that of calls, with the put/call ratio hovering around 2.2 as of 11:45 a.m. ET. Traders positioning for shares in the smoothie and juice retailer to extend declines during the next few months snapped up put options across several expiries this morning. Near-term bears purchased around 200 of the Oct $10 strike puts for an average premium of $0.14 each, and may profit at expiration next week if shares in JMBA decline 5.5% from today's low of $10.45 to breach the average breakeven point on the downside at $9.86.

Meanwhile, traders looking ahead several months picked up 480 of the Jan 2014 $10 strike puts for a premium of $0.80 apiece. Buyers of these contracts stand ready to profit in the event that JMBA shares decline another 12% to settle below the breakeven price of $9.20 by expiration next year. 

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.