Trader bets Copart slide is ending
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems detected the sale of 2,500 October 30 puts for the bid price of $0.30 in the final minutes of Friday's session. This is clearly a new position, as the open interest in the strike was 1,338 contracts before the trade appeared.
The put seller is looking for CPRT to stay above $30 through expiration in about three weeks. If it falls below that level, the trader will be on the hook to buy shares at an effective price of $29.70 once the $0.30 credit is included. (See our Education section)
CPRT finished Friday unchanged at $30.99. The online car-auction company gapped down from above $39 last Wednesday after missing earnings estimates and abandoning plans to become a real-estate investment trust.
Friday's put sale made up almost all of the option volume in CPRT, which has averaged just 583 contracts a day in the last month.