CardioNet Target of Bearish Traders

May.27.09 | About: BioTelemetry, Inc. (BEAT)

By David Russell

Put volume is soaring on CardioNet (NASDAQ:BEAT) today as investors position for downside in the heart-care company.

More than 5,100 June 17.50 puts changed hands today for $0.50 to $1.25, according to optionMONSTER's Depth Charge monitoring system. Purchases dominated the activity and volume was five times open interest in the strike.

BEAT, which is down 0.37 percent to $18.69 in afternoon trading, would have to drop about 11 percent by expiration for the puts to generate a profit. The stock has lost more than a quarter of its value in the last three months and has been trapped below $20 since the last earnings report on April 30.

The June 15 puts also saw above-average activity, with 1,596 contracts trading against open interest of 1,272. Overall put volume in the name was more than 21 times average and exceeded calls by almost 37-fold, reflecting a broadly bearish sentiment.

(Chart courtesy of tradeMONSTER)