OptionsHouse

Options Trading News

October 22, 2013  Tue 9:18 AM CT

STG: SEE CHART GET CHAIN FIND STRATEGIES
A trader is looking for St. Jude Medical to hold current levels in the next month.

About 2,100 STJ options have traded today, and while that isn't huge, it is twice the daily average for the last month. And almost all of the volume is in one print.

optionMONSTER systems detected the sale of 2,000 November 55 puts for the bid price of $0.60. The volume was about 4 times the previous open interest at that strike, so it is clearly a new position.

The put selling is a bet that STJ will hold above $55 in coming weeks. The trader is also willing to buy 200,000 shares if they fall below that strike by expiration in mid-November.

STG is up 0.51 percent to $56.83 this morning, which would be a new closing high for the stock, if barely. The medical-device maker, which reported earnings last week, has been trending higher from below $31 last November.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Problem with Trading Earnings

AP Options specializes in Swing Trading. Swing trading is the art of locating short term, quick, aggressive movements in a stock normally created by the technicals but, can be sometimes created by the fundamentals. These trades, at least in this service, last a couple of days to a week in the majority of cases.

View more education articles »