Time Warner Cable sees put selling
Chris McKhann | [email protected]
optionMONSTER systems show that a big block of 9,250 January 2015 85 was sold for the bid price of $6.60. This is clearly a new position, as open interest in the strike was just 145 contracts before the trade appeared.
The put selling is a bet that TWC will hold current levels or at least not fall back below $85 in the long term. If it does, the trader will be obligated to buy the shares if assigned. (See our Education section)
TWC jumped higher Friday on takeover speculation to a new high above $104, but shares finished yesterday down 2.54 percent to $101.29. The cable operator has closed below $85 only once since last July.
More than 17,000 TWC options changed hands overall, compared to the daily average of 2,341 contracts in the last month.