Options Trading News

September 15, 2016  Thu 11:41 AM CT


Traders are positioning for more downside potential in Whole Foods Market.

optionMONSTER's tracking program detected the purchase of about 5,500 November 28 puts for $1.61 to $1.72 today. This represents fresh buying, as volume surpassed open interest of 3,008 contracts.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

WFM is up 0.75 percent to $28.21 in afternoon trading but is down 10 percent in the last month. The organic-grocery chain is expected to report earnings after the close on Nov. 2.

Overall option volume is about average in WFM so far today, but puts outnumber calls by a bearish 3-to-1 ratio.

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