Put seller bets on floor under DaVita
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems show that 9,217 July 115 puts were sold in a single print for $1.60 yesterday. This is clearly a new position, as the open interest in the strike was just 829 contracts before the trade appeared.
The put seller will keep the $1.60 credit as profit if DVA stays above the $115 strike price through expiration in mid-July. But if the stock is below that level, the trader will be on the hook to buy the shares at an effective price of $113.40 when that credit is included. (See our Education section)
DVA was down 0.37 percent to close at $123.04 yesterday but has not traded below $115 since late February. The provider of kidney-dialysis services shot higher on May 8 after first-quarter results beat estimates on the top and bottom lines, hitting a lifetime peak of $131.33 two sessions later. But the stock has given up most of those gains in the last week, falling below its 50-day moving average.
Total option volume in the named was just shy of 12,300 contracts, 20 times its average volume in the last month.