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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.
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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