Puts Purchased on Reynolds American (RAI)

Shares of Reynolds American Inc. RAI are higher on the session by 0.32%, currently trading at $52.51. The stock has been trading largely sideways for the past nine months and has managed to hold the 200-day moving average when it recently tested it. Nevertheless, puts are being purchased on the name. The July $50.00 put was purchased on the offer 3,125 times; open interest on the strike is 1,386 contracts. Put volume on the session is now running at 11.5x 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.