Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 11, 2013  Thu 11:50 AM CT

NIHD: SEE CHART GET CHAIN FIND STRATEGIES
A huge bearish spread tops today's unusual activity in wireless communications company NII Holdings.

optionMONSTER's Depth Charge system shows that a trader bought 10,000 September 6 puts for the ask price of $0.80 and sold the same number of September 4 puts for the bid price $0.20. The volume was about 10 times the previous open interest at each strike, clearly showing that this is new activity.

The vertical spread cost the trader $0.60 to open, which is the amount at risk if shares remain above $6 through expiration. The trader could make $1.40 if the stock falls below $4 by that time. (See our Education section)

NIHD is down 6.6 percent today to $6.90, pulling back from resistance at the $7.50 level. Shares of the Latin American company hit a 52-week low of $4.11 a week ago.

More than 26,000 NIHD options have changed hands so far today, with only 1,506 calls. This volume compares to daily average of 1,875 contracts in the last month. 
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

When to listen (and not talk)

Success is often built on listening. I just spent a few days on vacation with the family, with a number...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER