OptionsHouse

Options Trading News

September 18, 2013  Wed 10:44 AM CT

T: SEE CHART GET CHAIN FIND STRATEGIES
Unusual put trading dominates the option activity in AT&T so far today.
 
A trader bought 13,650 October 33 puts for the ask price of $0.23 and sold 69,650 October 31 puts for $0.06. Three minutes later, another 13,650 October 33 puts were bought for $0.24, and 13,650 October 31 puts were sold for $0.06. The volume at each strike was above the previous open interest at each strike, indicating new activity.

The trader is opening a ratio spread, which is a relatively low-cost way of betting on a move down. He or she also takes on the risk of having to buy shares if they are below the lower strike. (See our Education section)

T is down 0.89 percent to $34.44 in midday trading. It was at a high of $39 in late April but bounced off support near $33 two weeks ago.

The telecom giant has seen more than 139,000 options change hands overall so far today, already more than 5 times its daily average for the last month.
Share this article with your friends


Invest Like a Monster - San Antonio: October 9-10

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »