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September 3, 2013  Tue 9:17 AM CT

SWI: SEE CHART GET CHAIN FIND STRATEGIES
A large trader apparently believes that SolarWinds will hold current levels.

optionMONSTER systems detected the sale of 8,320 September 35 puts in one print for the bid price of $0.40. The previous open interest at that strike was 1,116, so this is a new position.

The put selling is betting that SWI will hold up above $35 through that expiration. The trader is taking the risk of having to buy shares if they are below that level. (See our Education section)

SWI is up 2.41 percent to $37.33 this morning. The information-technology company gapped down from above $46 on July 26 after its last quarterly report. The stock hit a low of $35.32 at the end of that month but has been holding above support at $35 since.

Almost 10,000 SWI options have changed hands already today, compared to a daily average of just over 1,000 in the last month.
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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