Market News

December 4, 2013  Wed 9:42 AM CT

A put sale tops today's option volume in Brazilian oil giant Petrobras as shares hold support.

optionMONSTER systems show that 3,300 July 14 puts were sold for $1.65. The previous open interest was just 973 contracts, so this is a new position.

The put seller is looking for PBR to hold above $14 through expiration in mid-July 2014. The trader would be on the hook to buy shares if they fall below that level, at an effective price of $12.35. Investors sometimes sell puts this way in hopes of purchasing stock at a discount. (See our Education section)

PBR is down 0.8 percent to $14.02 this morning. The stock was up at resistance at $18 three weeks ago but has been gapping down since. It last closed below $14 in early September.
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