OptionsHouse

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


OptionsHouse

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

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

View more education articles »