Options Trading News

October 17, 2016  Mon 9:21 AM CT


A large position is showing caution on Mondelez ahead of quarterly results next week.

optionMONSTER's market scanner shows that 3,900 December 40 puts were purchased in one print for $1 early today. This is clearly a new position, as volume surpassed the strike's open interest of 2,545 contracts.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

MDLZ is up 0.05 percent to $42.03 in morning trading but is down 7 percent in the last three months. The snack and beverage company is scheduled to report earnings in pre-market hours on Oct. 26.

Total puts in the name outnumber calls by a bearish 52-to-1 ratio so far today.

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