Options Trading News

January 15, 2013  Tue 2:45 AM CT

Shares of OpenTable are at two-year highs, and one trader is betting that the stock will stay above a key level in the next two weeks.

optionMONSTER's tracking systems detected the sale of 2,000 January 50 puts in one print for $0.10 yesterday. The volume was more than double the strike's open interest of 952 contracts before trading began, so this is a new position.

OPEN fell 0.99 percent yesterday to close at $53. The online restaurant-reservation system began the year by breaking through resistance that had held at the $50 level for most of 2012, and on Jan. 7 the stock spiked to its highest intraday price since September 2011.

The put seller is looking for OPEN to remain above that $50 when the options expire on Jan. 18. If shares are below that strike price, the trader will face the obligation to buy the stock. (See our Education section)

Yesterday's trade pushed overall option volume in the name past 3,600 contracts, more than triple its daily average in the last month.
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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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