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

Archived Webinar

Education & Strategy

Short synthetic stock

With the use of the calls and puts we can not only create Long Synthetic Stock, but Short Synthetic Stock as well...

View more education articles »