Options Trading News

September 20, 2016  Tue 3:16 AM CT


A large trader apparently believes that downside potential is limited in Align Technology.

optionMONSTER's market scanners show that 5,000 October 90 puts were sold in one print for $0.95 yesterday. This is clearly a new position, as volume was more than 6 times the open interest at the strike.

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 that the risk of a big drop is limited. (See our Education section)

ALGN rose 0.31 percent to $94.13 yesterday and is up 19 percent in the last three months. The dental-equipment maker is expected to announce quarterly results after the close on Oct. 27.

Overall option volume was 3 times greater than average in the name yesterday.

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Align Technology seen holding ground

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The dental-equipment maker is up 19 percent in the last three months, and traders apparently believe that downside potential is limited.



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