EMC Draws Heavy Options Activity

CHICAGO (TheStreet) -- Out of the gate Wednesday, an investor in EMC(EMC Quote) sold off the upside of the stock to decrease the cost of downside protection in an intermediate-term risk reversal.

The investor bought the January 2010 17.5 risk reversal, selling the near-the-money January 2010 17.5 calls and buying the near-the-money January 2010 17.5 puts 20,000 times for 35 cents per spread with the stock trading at $17.20 a share.

The January 17.5 calls, currently trading down four cents on the day, have traded more than 21,500 times and are home to current open interest of 33,460 contracts. The January 17.5 puts have dropped two cents so far on the day and are home to current open interest of 9,250 contracts. ...