NTAP – NetApp, Inc. – Shares of the supplier of enterprise storage and data management software, as well as hardware products and services, are soaring 17.55% higher this morning at a new 52-week high of $38.12 as of 11:00 am (ET). NetApp’s shares jumped after the firm posted fourth-quarter adjusted earnings of $0.50 a share, which blew right past average analyst forecasts of $0.43 a share. Investors looking to lock in the sharp rally in the price of the underlying shares purchased approximately 3,800 July $37 strike puts at an average premium of $2.13 per contract. The put options provide downside protection in case shares reverse direction ahead of July expiration. Downside protection in this case kicks in if NetApp’s shares fall 8.525% from the current price of $38.12 to breach the average breakeven point on the puts at $34.87 by expiration day.
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