Market News

September 26, 2013  Thu 2:45 AM CT

One trader is looking for lower volatility in Safeway with shares near five-year highs  

optionMONSTER systems detected the sale of 5,000 January 32 puts for the bid price of $1.35. This is clearly a new position, as open interest in the strike was just 704 contracts before the trade appeared.

Less than two minutes later, 160,000 SWY shares traded for $32.0625. Combined with the short puts, this creates an overall delta-neutral position that is designed to profit from volatility that comes in lower than what is implied by the options. (See our Education section)

SWY was down 0.5 percent to $31.92 yesterday, one session after seeing its highest close since June 2008. Shares of the supermarket chain have doubled in the last year.
News Archives
OptionsHouse

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »