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September 3, 2013  Tue 3:55 AM CT

VOD: SEE CHART GET CHAIN FIND STRATEGIES
The bears are targeting Vodafone after the telecom ripped to a multiyear high on last week.

optionMONSTER's Depth Charge monitoring system detected the purchase of 5,000 of the September 31 puts for the ask price of $0.35. An equal number of September 33.50 calls was sold at the bid price of $0.15 seconds later. Volume was more than 30 times previous open interest at both strikes, indicating that new positions were initiated.

The transaction could be an outright bearish play, but is more likely a collar to protect a long position in the stock. He or she paid $0.20 to limit losses below $31 while also capping gains at $33.50.  See our Education Section for other hedging techniques.

VOD rose 1.73 percent to $32.35 on Friday, one session after leaping from below $30 on the news it's considering a plan to monetize its 45 percent stake in Verizon Wireless. The stock is now at the highest levels since 2008, and the collar would to protect in case the deal falls through.

Total option volume was almost 4 times greater than average in the session, according to Depth Charge.
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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