Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 18, 2013  Tue 3:47 AM CT

TWC: SEE CHART GET CHAIN FIND STRATEGIES
A long-term trader apparently believes that any downside will be limited in Time Warner Cable, which came off Friday's highs yesterday.

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.
Share this article with your friends


Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER