Options Trading News

September 22, 2016  Thu 7:47 AM CT


At least one trader apparently believes that a drop may be coming in WisdomTree Investments.

optionMONSTER's market scanner shows that 2,600 October 10 puts were purchased for $0.40 at the same time yesterday. This is clearly a new position, as volume was well above the strike's open interest of 1,015 contracts.

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)

WETF fell 3.71 percent to $10.39 yesterday but is up 7 percent in the last month. The exchange-traded fund operator is expected to report earnings before the market opens on Oct. 28.

Overall option volume in the name was 5 times greater than average yesterday.

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