Market News

October 23, 2013  Wed 2:45 AM CT

Twenty-First Century Fox hit an all-time high yesterday, and one large trader is looking for the stock to hold current levels.

optionMONSTER's tracking systems detected the sale of 4,747 January 32 puts in one print for $0.50. The volume was well above the strike's open interest of 1,284 contracts before the trade appeared, showing that this is a new position.

The put seller is looking for FOXA to stay above $32 through expiration in mid-January, at which time he or she will keep the $0.50 credit as profit. But if the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

FOXA rose 1.37 percent yesterday to close at $34.87, its highest close since the media and entertainment company was spun off from News Corp. almost exactly a year ago. The stock dipped to the $32 level on Oct. 9 but has been rising steadily since.

Total option volume topped 7,800 contracts yesterday, nearly 8 times its daily average for the last month.
News Archives
OptionsHouse

Education & Strategy

Four-Part Edition: Cash-Secured Puts, Covered Calls, Stock Replacement Calls, and Protective Puts

We are finishing this year's editions of Advantage Point Newsletters with a "best of" review of the simple options strategies that should be the basic foundation for any investor.

More education articles »