Market News

October 12, 2016  Wed 7:47 AM CT

A trader is positioning for more declines in Vodafone next year.

optionMONSTER's monitoring program shows that 2,136 January 28 puts were sold for $1.56 while 2,136 April 27 puts were purchased for $1.54 yesterday. Volume was below open interest in the January contracts, indicating that a bearish position was rolled forward by three months to a lower strike.

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)

VOD fell 1.45 percent to $27.85 yesterday and is down 9 percent in the last three months. The U.K. mobile-telecom carrier is scheduled to announce quarterly results in pre-market hours on Nov. 15.

Overall option volume in the name was twice its daily average yesterday. Puts outnumbered calls by a bearish 3-to-1 ratio.

News Archives
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »