Options Trading News

September 19, 2016  Mon 6:45 AM CT


A large trader is increasing a bearish position in Nu Skin Enterprises.

optionMONSTER's monitoring system detected the sale of 5,000 September 60 puts for $2.55 and the purchase of 10,000 December 55 puts for $4.20 on Friday. Volume was below open interest in the September contracts, which expired last week, indicating that a bearish position was rolled forward by three months and doubled in size.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

NUS fell 0.42 percent to $57.51 on Friday but is up 29 percent in the last three months. The distributor of anti-aging and nutritional products is expected to report earnings after the close on Oct. 27.

Overall option volume was 20 times greater than average in the name on Friday. Puts outnumbered calls by 1,053 to 1.

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