How one call seller is ringing up Avon
Chris McKhann | firstname.lastname@example.org
AVP is down 3.19 percent to 20.33 this afternoon. Yesterday it was below $20 before running as high as $22.71 and then closing at $21 even.
optionMONSTER's systems detected the sale of 35,000 July 22 calls, including two prints of 24,700 and 10,000 that traded seconds apart for the bid price of $1.15. The volume was more than 5 times the previous open interest, so this is a new opening position.
This call selling represents a belief that AVP will not return to yesterday's highs. The options were probably traded against long stock as a covered call position, which would be bullish up to the $22 strike price but surrender any upside in the shares beyond that. (See our Education section)