Downside Purchased on Reynolds American (RAI)

Shares of Reynolds American Inc. RAI are higher on the session by 4.63%, currently trading at $53.75. The stock has been trading lower over the past few weeks, but has managed to regain the 50-day moving average as of late. Options traders were buying the July $55.00/50.00 put spread today, 1,400 times. Volume did not exceed open interest on either strike. Put volume is now running at 5.48x the daily average. Reynolds American Inc. is a holding company. The company's wholly owned subsidiaries include R. J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc., Lane, Limited, Conwood Holdings Inc., and American Snuff Company, LLC, and Rosswil LLC, collectively referred to as the Conwood companies.