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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.
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As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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