Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 26, 2014  Wed 4:45 AM CT

EXPE: SEE CHART GET CHAIN FIND STRATEGIES
Traders apparently think that the bottom will fall out of Expeditors International.

optionMONSTER's Depth Charge monitoring program detected the purchase of 3,300 April 40 puts yesterday, most of which priced for $1.65. Volume was more than 200 times higher than the previous open interest at the strike, indicating that new positions were initiated.

Those buyers now have the right to sell the stock for $40 in the next two months no matter how far it may fall during that period. The puts carry the potential for significant leverage if shares continue to push lower. (See our Education section)
http://www.optionmonster.com/education/

EXPD dropped 7.02 percent to $39.06 yesterday after earnings missed estimates. While the shipping company has benefited from increased volumes, weak pricing has hurt profit. Shares are down 12 percent so far this year, while the broader market is little-changed in the same period.

Overall option volume in Expeditors was 13 times greater than average in the session, according to the Depth Charge. Overall puts accounted for a bearish 79 percent of the total.
Share this article with your friends


Related Stories

EXPE

Large investor rides with Expedia

July 24, 2014

The online travel agency pulled back after reaching an all-time high on July 3 but has bounced off its 30-day moving average ahead of its earnings report next week.

Premium Services

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER