OptionsHouse

Options Trading News

November 8, 2012  Thu 9:16 AM CT

OSG: SEE CHART GET CHAIN FIND STRATEGIES
A bearish trader is targeting Overseas Shipholding today as it hovers just above all-time lows.

A trader bought more than 2,400 April 1.50 puts for the ask price of $0.80, according to optionMONSTER's Depth Charge system. The volume was above open interest of 1,963 contracts, indicating new activity.

The put buyer apparently believes that this stock is unlikely to survive, as the position would be profitable if the stock is below $0.70 at expiration. (See our Education section)

OSG is up 2.7 percent this morning to $1.53, but that is a gain of just $0.04. Shares of the tanker company headed into last month above $7 but hit an all-time low of $1.02 on Oct. 22 after it was hit with a lawsuit over alleged securities-law violations.
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

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »