Fiat Chrysler has rallied sharply, and now traders want protection.
OptionMonster's monitoring program shows that 7,600 January 8 puts were purchased for $0.10. Volume was more than 7 times open interest at the strike.
Puts fix the price where a stock can be sold, so they make money to the downside. (See our Education section.) They were probably used to hedge long positions in the automaker, which is up 42 percent in the last three months.
FCAU fell 0.33 percent to $9.05 yesterday and is back to the area where the stock traded immediately before crashing in January. The next quarterly report is estimated for pre-market hours on Jan. 25.
Overall option volume was twice the daily average. Puts outnumbered calls by a bearish 8-to-1 ratio.