The toy woes continue to Mattel . The company has issued 3 different toy recalls this summer due to lead paint issues. This morning, Brazil has suspended imports from Mattel until the country can tell if the company is following local safety standards. According to report, the suspension has been in effect since August 17 and will be lifted after the products are deemed safe by the government.
Any attempts to edge higher this morning have been halted by the stock's descending 20-day moving average. This short-term trendline has ushered the shares lower since late May. The stock is now clinging to its rising 20-month moving average near 21.50. A breach of this long-term support level could spell trouble for the shares.
Not surprisingly, options players are extremely skeptical of the shares. The Schaeffer's put/call open interest ratio stands at 1.75, as put open interest easily outweighs call open interest. This reading is also higher than all but 6% of those taken during the past 52 weeks.