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