Options Trading News

September 16, 2016  Fri 11:09 AM CT


C.H. Robinson Worldwide has fallen in recent weeks, and a trader is positioning for more downside potential.

optionMONSTER's monitoring system detected the sale of 2,000 September 67.50 puts mostly for $0.50 and the purchase of 2,000 October 67.50 puts mostly for $1.70 this morning. Volume was below open interest in the September contracts, which expire at the end of today's session, indicating that a bearish position was rolled forward by a month.

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)

CHRW is off 0.58 percent to $66.97 in midday trading and down 7 percent in the last three months. The transportation-logistics company is expected to report earnings after the close on Oct. 25.

Overall option volume in the name is 4 times greater than average so far today. Puts outnumber calls by a bearish 15-to-1 ratio.

Share this article with your friends


Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »