Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 4, 2012  Fri 11:52 AM CT

AVP: SEE CHART GET CHAIN FIND STRATEGIES
A trader is betting on limited upside in Avon Products as the cosmetics icon gives up some of its gains from yesterday.

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)
Share this article with your friends


Related Stories

AVP

Bears keep calling on Avon Products

October 8, 2014

Shares of the ailing cosmetics icon have been falling sharply amid poor quarterly results and are back to their worst levels since 1996.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER