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


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »