Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 19, 2014  Thu 3:16 AM CT

VZ: SEE CHART GET CHAIN FIND STRATEGIES
A long-term put sale is targeting a floor in shares of Verizon Communications well below current levels.

A block of 48,371 January 2016 33 puts was sold for $0.58 yesterday, below the listed bid price at the time, according to optionMONSTER systems. The volume was twice the previous open interest in the strike, so this is clearly a new position.

The put seller is looking for VZ to stay above $33 through expiration in early 2016. But the trader takes on the risk of having to buy shares if they fall below that price. (See our Education section)

VZ was up 0.43 percent to $49.42 yesterday. The wireless carrier has been hovering around this level for the last month, driving the 20-day historical volatility to a low of 8.6 percent. Shares were down at support at $46 in late April.
Share this article with your friends


Related Stories

VZ

Cramer: Diversified dividend portfolio

September 5, 2014

The radical actions by the European Central Bank are taking yields around the world down to levels where you can't really make money using the usual fixed-income alternatives. So what to do?

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER