tradeMONSTER: Trade free for 90 days

Options Trading News

January 23, 2014  Thu 10:10 AM CT

BONT: SEE CHART GET CHAIN FIND STRATEGIES
Call selling sees limited upside for Bon-Ton Stores as shares trade near lows.

optionMONSTER systems show that a trader sold 2,500 July 12 calls for the bid price of $1.35 on a wide bid/ask spread. The volume was slightly more than the open interest, so this clearly is a new position.

The trader is betting that BONT won't see much upside beyond $12. It is likely that the options were sold against long shares in a covered-call position, which would be bullish up to that strike price but gives up any gains beyond that. (See our Education section)

BONT is down 1.92 percent to $11.22 this morning. The department-store operator was above $18 a month ago but has fallen to its lowest levels since early November. 
Share this article with your friends


Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER