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Options Trading News

January 15, 2013  Tue 2:45 AM CT

OPEN: SEE CHART GET CHAIN FIND STRATEGIES
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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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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