Market News

October 13, 2016  Thu 7:16 AM CT

At least one trader apparently believes that downside potential is limited in Ship Finance.

optionMONSTER's market scanners show that 2,500 February 12.50 puts were sold in one print for $0.65 yesterday. This is clearly a new position, as open interest in the strike was only 900 contracts before the trade occurred.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think the risk of a big drop is limited. (See our Education section.)

SFL fell 0.41 percent to $14.45 yesterday and is down 2 percent in the last three months. The operator of ocean-transport vessels is expected to report earnings in pre-market hours on Nov. 25.

Overall option volume was 6 times greater than average in the name yesterday.

News Archives

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »