Monster Beverage draws puts
Mike Yamamoto | [email protected]
optionMONSTER's Depth Charge system has detected the purchase of 2,700 June 65 puts for $2.25 to $2.35 in less than 2 minutes this morning. Open interest was just 772 contracts before the trade appeared, indicating that this is a new position.
These puts lock in the price where MNST shares can be sold no matter how far they might fall. The trader could be using them to hedge a long position or to make an outright bearish bet, but either way they will expire worthless if the stock remains above $65 through mid-June. (See our Education section)
MNST is down 1.01 percent to $65.45 after beating earnings expectations but missing revenue forecasts in its quarterly report yesterday afternoon. The beverage company had been trending lower since hitting a two-year high of $75.63 in late February but bounced near its 200-day moving average a month ago and has been trading in an increasingly tight range since.
Total option volume in the name already tops 6,300 contracts, more than triple its full-session average for the last month. Overall puts outnumber calls by more than 2 to 1 in the session so far.