Market News

November 28, 2016  Mon 11:28 AM CT

Traders are positioning for a possible drop in Huntsman.

OptionMonster's monitoring program shows that 9,100 December 19 puts were purchased for $0.55 to $1.10 today. This represents fresh buying, as volume was more than 11 times the strike's open interest.

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)

HUN is down 3.83 percent to $18.58 in afternoon trading but is up 17 percent in the last month. The chemical company's next quarterly results are expected in pre-market hours on Feb. 9.

Overall option volume in the name is 6 times greater than average so far today. Puts outnumber calls by a bearish 8-to-1 ratio.

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