Options Trading News

December 18, 2012  Tue 12:21 PM CT

A trader is turning to the same put spread in MICROS Systems for the second time in three days even as the stock bounces today.

More than 10,000 MCRS options have changed hands, and it is the same put spread that we saw on Friday that tops the volume again today. optionMONSTER systems show that 5,000 each of the March 35 and 30 puts traded--exactly the same size and strikes as a trade we noted in last week's session.

The March 35 puts traded for the ask price of $1.15 on a wide bid/ask spread, indicating that they were bought, while the March 30s were sold for $0.30. Open interest at these strikes were 4,990 and 5,000 respectively.

It appears that the earlier trader, or a new one, is following the same vertical spread opened on Friday. Today that spread cost $0.85, which is the maximum potential loss if shares are above $35 at expiration. The maximum gain of $4.15 would be realized if shares are below $30 at that time. (See our Education section)

MCRS is up 3.25 percent to $40.68 in afternoon trading after hitting a low of $39.31 yesterday. Shares of the company, which makes IT systems for the hospitality industry, traded above $53 in mid-September but have been trending lower since.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. 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.

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