Market News

October 14, 2016  Fri 6:45 AM CT

XPO Logistics saw bearish option activity yesterday for the second time this week.

optionMONSTER's tracking program detected the purchase of 2,000 November 35 puts for $2.45 to $2.60 at the same time yesterday. This is clearly a new position, as volume was more than 11 times the open interest in the strike, and follows buying in the November 38 puts on Tuesday.

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)

XPO fell 4.21 percent to $34.82 yesterday but is up 38 percent in the last three months. The transportation-logistics company is scheduled to release quarterly results after the close on Nov. 2.

Overall option volume was 4 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 10-to-1 ratio.

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