Options Trading News

Shares of Owens-Illinois have been vacillating around $24 for most of 2012, and one option trader sees more of the same.

OI is down 3 percent to $23.75 this morning. The glass-container manufacturer was down near $22 two weeks ago and has found resistance at $25, but it held tight near that $24 price since the end of January.

Dominating the light options trade this morning is action in the May 24 puts, where a trader sold 2,000 contracts for the bid price of $0.80 on a wide bid/ask spread, according to optionMONSTER's systems. Open interest was 724 at that strike, so this is a new position.

The put selling is a bet that OI will remain around this $24 through the May expiration, which makes the trade similar to a covered call in that respect. The trader may actually be looking to buy the stock, as he or she will eventually be assigned if the stock stays below the strike. But the trader doesn't see huge upside in the immediate future either. (See our Education section)