Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 4, 2012  Thu 11:35 AM CT

STX: SEE CHART GET CHAIN FIND STRATEGIES
Seagate is holding the $30 level, but today's option activity anticipates only limited upside.

A trader sold 6,400 January 34 calls for the bid price of $1.20, according to optionMONSTER's tracking systems. That volume was nearly 10 times the open interest of 654 contracts in the strike at the start of the session, clearly indicating a new position.

The call selling is based on the idea that STX won't see much upside beyond $34. The options may have been sold naked with an initial bearish bias, or they could have been traded against long stock in a covered call position. The latter would be bullish up to the strike price but not above it. (See our Education section)

STX is up 0.47 percent at $30.19 this afternoon and has held support at this level for the last month. The computer hard-drive maker hit a 52-week high of $35.71 in mid-August.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER