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


Related Stories

VZ

How call buyers are dialing into Verizon

April 26, 2016

The wireless carrier reported bearish quarerly results last Thursday, but traders are betting on a rally after the summer.

VZ

How bulls are playing rally in Verizon

March 30, 2016

The wireless carrier has risen 16 percent in the last three months, and traders are making cheap best that the rally will continue this summer.

OptionsHouse

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »