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By David Russell

Dish Network (NASDAQ:DISH) has been getting hammered, and at least one bear is staying tuned for more downside before earnings. Our Depth Charge monitoring program detected a surge of put activity in the satellite TV company, which has lost 14 percent of its value in the last week. A block of 1,000 September 27 puts was sold for $2.40, but volume was below existing open interest.

Some 1,500 September 25 puts were purchased at the same time for $1.45 and an equal number of September 22 puts were sold for $0.45. The activity in the higher-strike contracts was probably the closing of an existing position. The investor then used some of that money to open a new put spread at a cost of $1. If DISH closes at or below $22 on expiration, the new position stands to earn a 200 percent profit.

DISH was down 5.26 percent to $25.31 in late morning trading. It touched a three-year high over $32 just one month ago, The last earnings report on May 2 beat forecasts on the top and bottom lines, fueled by strong subscriber gains. The next release is scheduled for Tuesday morning.

Overall option volume in the name is eight times greater than average so far today, with puts outnumbering calls by 17 to 1.

Source: Bear Targets Dish Network Ahead of Earnings