Rush of new put options in RadioShack suggests bleak outlook, traders say

|About: RadioShack Corporation (RSH)|By:, SA News Editor

An unusual rush of bearish activity in RadioShack (RSH) options suggests some investors are betting on another downturn in the beleaguered stock, traders say.

On a day with no apparent news on RSH, options trading volume jumped to nearly 6x the daily average, with 81% of trading in bearish put options, in the busiest day of trading in its bearish options since July when reports surfaced that the company had hired bankers to fix its balance sheet.

With the shares moving so low, it looks like investors "are expecting RadioShack to soon file for bankruptcy," says Miller Tabak's senior options strategist. "With earnings coming up (Feb. 24), there is a lot of speculation."