OptionsHouse

Options Trading News

April 19, 2013  Fri 9:12 AM CT

CTL: SEE CHART GET CHAIN FIND STRATEGIES
A trader is looking for higher volatility in CenturyLink, which has regained about half of its losses from a gap down in February on quarterly results.

optionMONSTER systems show that more than 12,000 May 35 puts have traded in volume far above the strike's open interest of 892 contracts, clearly indicating new activity. One block of 8,056 was bought for the ask price of $0.40.

At exactly the same time, a block of 100,700 CTL shares was purchased for $37.19. The combination of stock and options creates a long-volatility position. (See our Education section)

CTL is up 0.54 percent to $37.06. The telecom carrier gapped down from above $41 to below $33 on its February earnings announcement and has been slowly regaining some of that ground since then.

More than 14,000 CTL options have changed hands already this morning, about triple its daily average in the last month.
Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »