OptionsHouse

Options Trading News

May 7, 2013  Tue 9:40 AM CT

LOW: SEE CHART GET CHAIN FIND STRATEGIES
Lowe's is pulling back from an all-time high today, but one trader is betting that the home-improvement retailer will hold at current levels.

optionMONSTER systems detected the sale of two blocks of 3,000 June 39 puts for $0.88 and $0.87. The previous open interest had been just 894, so that was a new position.

The put selling is a bet that LOW will hold above $39 through expiration in mid-June. If it does not, the trader will face the obligation to buy the shares. (See our Education section)

LOW is down 1.05 percent to $40.38 after hitting a lifetime peak of $41.14 this morning. Shares were below $39 last week and under $32 in November.

Total option volume in the name has already reached 10,000 contracts so far today, topping its total daily average in the last month. 
Share this article with your friends


Related Stories

LOW

Trader sells calls before Lowe's earnings

August 1, 2016

3,400 October 87.50 calls sold in one print for $0.73 against open interest of 522 contracts.

OptionsHouse

Premium Services

Education & Strategy

Dissecting a big institutional trade

This week's column will study a recent call ratio spread. We're not recommending using this strategy because it has potentially huge risk. But we can learn from this different use of options by a large institutional investor.

View more education articles »