Options Trading News

October 22, 2013  Tue 9:18 AM CT

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


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »