Big put sale sees floor in Verizon
Chris McKhann | email@example.com
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.