Bearish Options Active On Market Vectors Gold Miners ETF (GDX)

Aruba Networks, Inc. (NASDAQ:ARUN) – The provider of network access solutions for mobile enterprise networks released preliminary third-quarter earnings and revenue numbers that missed analyst expectations, sending shares in Aruba Networks, Inc. (NASDAQ:ARUN) down 22% to $17.12 today, the lowest level since August of 2012. June expiry put options trading on Aruba this morning indicate some traders are bracing for the stock to extend losses in the near term. The June $18 strike puts attracted substantial volume, with around 1,500 in the money puts changing hands versus open interest of just 30 contracts. It looks like most of the volume was purchased during morning trading for an average premium of $1.51 each. Put buyers stand ready to profit at June expiration should shares in Aruba Networks, Inc. (NASDAQ:ARUN) decline another 3.7% to breach the average breakeven point on the downside at $16.49.

Caitlin Duffy
Equity Options Analyst

The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.