Put seller bets on floor under JP Morgan
Chris McKhann | email@example.com
JPM opened the day lower but is now up 0.4 percent at $32.94. The bank gapped higher at yesterday's open but finished the day lower. Shares were trading above $46 two months ago but posted its lowest close for the year at $31 on Monday before bouncing.
A trader sold 10,000 December 35 puts for the bid price of $5.05, according to optionMONSTER's systems. This volume was twice the open interest at that strike, so it was a new position.
The put selling is a bet that JPM will bounce from here. Traders who sell in-the-money puts also use such positions to buy stock at a lower price, as will happen here if they are assigned at $29.95. (See our Education section)