Puts Purchased in Magna as Stock Falls (MGA)

Shares of Magna International MGA are falling today by 2.29%, currently trading $72.15. The stock has exploded higher over the past year, especially in the near-term when it spiked to $75. The stock is now selling off, toward the 50-day moving average. Options traders are buying puts today in the name with the June $70 put purchased on the offer 2,000 times; open interest on the strike was only 330 contracts, indicating new, bearish positioning. The stock seems very overdone, especially in today’s market; I would wait for a strong pullback before thinking about a long position. Magna International Inc. is a diversified global automotive supplier.