Radian seen holding up in long term
Chris McKhann | [email protected]
optionMONSTER systems show that more than 15,000 RDN options have traded so far today, compared to a daily average of 3,400. Most of the action is in the January 2015 5 puts.
A trader sold 5,000 of those contracts for $1.10 and another 5,000 for $1.05 seconds later. The open interest in the strike was just 63 before the session began, so these are new positions.
The put selling is a bet that RDN will hold up over the long term. The trader risks having to buy shares if RDN falls below the $5 strike price. (See our Education section)
RDN is up 1.47 percent to $8.27 this morning. It is below yesterday's intraday high but on pace for its best close since January 2011. Shares hit a low of $2 in late May and were below that $5 level in mid-December.