Options Trading News

September 19, 2016  Mon 6:14 AM CT


A trader is betting that Zoetis will hold its ground in the next month.

optionMONSTER's monitoring programs detected the sale of 2,000 October 48 puts in one print for $0.47 on Friday. Volume was more than 8 times the open interest in the strike, showing that this is a new position.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

ZTS fell 0.41 percent to $50.51 on Friday but is up 7 percent in the last three months. The veterinary-medicine developer reported bullish results on Aug. 3 and is expected to announce its next quarterly numbers in pre-market hours on Nov. 2.

Overall option volume in the name was 5 times greater than average yesterday.

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