OptionsHouse

Options Trading News

October 23, 2013  Wed 2:45 AM CT

FOXA: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »