Options Trading News

September 27, 2013  Fri 11:01 AM CT

Boyd Gaming has seen its share price double this year, and traders are betting that the casino operator will hold current levels.

More than 3,000 October 14 puts have been sold today, almost all of them going for $0.50. Open interest in the strike was just 640 contracts before the trades appeared, indicating that hese are new positions.

These put sellers are looking for BYD to stay above $14 through expiration in three weeks. If the stock falls below that strike price, they will be on the hook to buy shares at that level. (See our Education section)

BYD is down 1.16 percent to $14.10 in midday trading. The stock has more than doubled since beginning 2013 at $7 but is facing a resistance level encountered in mid-May.
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The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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