Puts Sold on Family Dollar Stores (FDO)

Shares of Family Dollar Stores Inc. FDO ended the session down by 8.06%, trading at $36.26. The stock cratered today on less than stellar earnings guidance. The stock has been trading higher for the better part of nine months and it appears that it was priced for perfection prior to this report. Options traders were selling puts on the name today, though, betting that the stock will not slide much further. The most notable action came on the July $35.00 put line, where 5,700 contracts were sold on open interest of 4,553 contracts. Put volume was running at 12.34x the daily average today. Family Dollar Stores, Inc. operates a chain of more than 6,600 general merchandise retail discount stores in 44 states, providing consumers with a selection of merchandise in neighborhood stores. The company's merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics.