Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 19, 2013  Fri 5:16 AM CT

MAS: SEE CHART GET CHAIN FIND STRATEGIES
Masco fell yesterday, and traders looked for more downside.

optionMONSTER's Depth Charge program detected the purchase of more than 13,000 May 18 puts, almost all of which priced for $0.60. These are clearly new positions, as the volume was more than 40 times the strike's open interest before the session began.

Puts lock in the price where investors can sell shares in the home-improvement company, which have been edging lower since March 20. These options stand to generate significant leverage to the downside if MAS continues to fall, so they might be hedging a long position in the stock or just betting on a drop. (See our Education section)

MAS ended the session down 1.11 percent to $18.79. There is some support at the $18 level, but continued selling could quickly push it to $16. The company is scheduled to report earnings on April 30.

Total option volume was 14 times greater than average yesterday, with puts outnumbering calls by more than 21 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

MAS

Masco attracts short-term bulls

April 9, 2014

Short-term option traders are looking for a quick bounce in the company, which manufactures products ranging from cabinets to faucets.

MAS

Largest option trades in equities

April 4, 2014

Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER