Options Trading News

September 16, 2016  Fri 6:45 AM CT


Traders are looking for Time Warner to hold its ground through the end of this month.

optionMONSTER's monitoring programs show that 5,000 Weekly 73 puts expiring on Sept. 30 were sold for $0.44 to $0.47 at the same time yesterday. This is clearly new positioning, as there was no open interest in the strike before the session began.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think the risk of a big drop is limited. (See our Education section.)

TWX fell 0.79 percent to $75.62 yesterday and is down 6 percent in the last month. The entertainment company reported bullish results on Aug. 3 and is expected to announce its next earnings numbers in pre-market hours on Nov. 2.

Overall option volume was 3 times greater than average in the name yesterday.

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