By David Russell
Jabil Circuit doubled-topped at $18 earlier this week, and now the bears are moving in for the kill.
optionMONSTER's Depth Charge tracking system detected the purchase of more than 5,000 April 17.50 puts against open interest of 1,090 contracts. Most of the trades priced for $1 and $1.05.
JBLis down 2.26 percent to $17.33 in afternoon trading. The shares have been pulling back after hitting a new 52-week high of $18 in intraday trading Wednesday. That was about the same price level where the contract-manufacturing stock peaked in December and January.
Today's put buying occurs ahead of JBL's fiscal second-quarter earnings release scheduled for the postmarket March 23. Jabil rallied on strong results after its last earnings announcement on Dec. 22.
The stock must fall more than 5 percent by expiration for the puts to turn a profit. The next likely support level is around $16, where it consolidated in late January before pushing lower.
Overall options volume in JBL is four times greater than average so far today. Puts account for 87 percent of the activity.
(Chart courtesy of tradeMONSTER)