Danaher draws put sale before earnings
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's systems detected the sale of 5,000 August 48 puts in a single print for $0.72. Open interest in the strike was a mere 10 contracts at the start of the session, so this is clearly a new position.
DHR is off 0.56 percent this morning to $50.01 as the stock appears to be stabilizing after a rough first half of July. The manufacturer of medical and industrial products began the month trading well over $52 but fell sharply until finding support around $49.50 last Thursday, a level that goes back to early January.
Today's put seller apparently believes that Danaher will be above the $48 strike price when the options expire on Aug. 17. If shares are below that price at that time, the trader faces assignment and the requirement to buy the stock. (See our Education section)
The trade made up almost all the volume in DHR today, pushing its option total to 4 times its full-session average.