ATHN – Athena Health, Inc. – Shares of the provider of Internet-based business services for physician practices fell as much as 4.00% today to an intraday low of $25.18. Today’s low point in ATHN shares marks an 11.025% decline in the price of the underlying stock since Monday when shares touched an intraday high of $28.30. Athena Health appeared on our scanners today after one bearish options trader rolled a sizeable put position in the August contract forward to the September contract. It appears the investor sold 5,100 puts at the August $22.5 strike for a premium of $0.20 each in order to purchase the same number of puts at the September $22.5 strike at a premium of $1.00 apiece. The net cost of the transaction, in isolation, amounts to $0.80 per contract and extends downside protection for the investor in case shares continue to fall ahead of expiration day next month. Without knowing how much the investor paid to initially buy the August $22.5 strike puts, it is difficult to discern the true breakeven point on the September $22.5 strike put position. But, ignoring prior transactions, the investor faces a new breakeven price of $21.70. Downside protection kicks in if Athena’s shares decline 13.8% from today’s low of $25.18 to breach the breakeven point to the downside at $21.70 by September expiration.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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