OptionsHouse

Options Trading News

August 17, 2012  Fri 11:55 AM CT

CTL: SEE CHART GET CHAIN FIND STRATEGIES
CenturyLink is coming off its 52-week highs, but one trader apparently does not see the stock collapsing in the near future.

CTL is down 0.79 percent to $41.66 after trading above $43 last week. Shares of the telecom carrier have run up from support at $32 since early October.

A trader sold 3,000 September 40 puts for the bid price of $0.40, according to optionMONSTER's systems. The previous open interest was just 415 contracts, so this is a new position.

The short puts represent a bet that CTL will hold above $40 in the next month. The trader is also showing a willingness to buy shares if they are below that strike price at expiration.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »