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Hasbro (HAS - 32.33) announced this morning that it has entered a licensing agreement with LeapFrog Enterprises (LF), which will allow the educational entertainment provider to feature Hasbro Studios' animated TV programming via its LeapFrog App Center. Separately, HAS said it's suing ASUSTeK Computer for trademark infringement.
In the options pits, the bears are converging on the stock today, as more than 5,000 puts have changed hands so far, representing a whopping 27 times the equity's expected intraday volume. Most of the action has centered around the January 2012 32.50 strike, where more than 4,600 puts have been traded -- the majority of them at the ask price, signaling buyer-driven volume. This option currently holds open interest of just 2,731 contracts, so it's safe to assume that new positions are being opened here today.
What's more, HAS' 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio stands at 0.86, which ranks in the 64th percentile of its annual range. This confirms that traders are purchasing bearish options over bullish at a faster-than-usual clip.
However, most of the analysts following the toy giant are feeling optimistic toward HAS. According to Zacks, nine "buy" or better recommendations have been bestowed upon the stock, compared to four "holds" and zero "sells."
Examining HAS' technical performance, the equity has lost more than 31% of its value year-to-date, and has underperformed the broader S&P 500 Index (SPX) by around 11% during the past 40 sessions. On the charts, the stock is on pace to end a second consecutive week below familiar resistance at its 10-week and 20-week moving averages.
In the early afternoon hours of the session, HAS is down about 2.5% and is trading at $32.33.