Options Trading News

September 22, 2016  Thu 5:16 AM CT


First Data has rallied in recent months, but one trader is positioning for a potential drop.

optionMONSTER's tracking program detected the purchase of 2,000 April 11 puts for $0.78 at the same time yesterday. Volume surpassed open interest of 1,315 contracts, showing that this is fresh buying.

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)

FDC fell 1.11 percent to $13.31 yesterday but is up 9 percent in the last three months. The electronic-payment services company reported bullish results on Aug. 1 and is expected to release its next earnings numbers in pre-market hours on Oct. 26.

Overall option volume was 9 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 7-to-1 ratio.

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