ValueClick Inc (NASDAQ:VCLK) – Investors in online marketing company, ValueClick Inc (NASDAQ:VCLK), are taking it on the chin today, with shares in the name down 17% at $26.25 in early-afternoon trading. The stock fell sharply after the company yesterday forecast second-quarter earnings below average analyst estimates. Options traders bracing for further declines in ValueClick Inc (NASDAQ:VCLK) shares snapped up front month puts on the stock. The May $25 strike puts traded more than 600 times versus open interest of 126 contracts. It looks like most of the volume was purchased in the early going for an average premium of $0.41 each. Put buyers may profit at expiration next week in the event that ValueClick Inc (NASDAQ:VCLK)’s shares decline 6.3% from the current level to trade below the average breakeven price of $24.59. September expiry options activity this morning, however, suggests at least one trader is preparing or shares to rebound. The purchase of around 640 calls at the Sep $27 strike for a premium of $2.00 each positions the strategist to profit at expiration should shares in ValueClick Inc (NASDAQ:VCLK) rally 10.5% to top $29.00. Analysts at several firms downgraded ValueClick this morning on the heels of the company’s first quarter earnings report yesterday.
Caitlin Duffy
Equity Options Analyst
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