Market News

September 30, 2013  Mon 3:16 AM CT

Copart plunged last week on poor quarterly results, but one trader apparently believes that the bloodletting is over.

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.
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