OptionsHouse

Options Trading News

August 3, 2012  Fri 3:16 AM CT

URI: SEE CHART GET CHAIN FIND STRATEGIES
As United Rentals struggles to bounce off its lows of the year, one trader is betting on a floor beneath the stock.

optionMONSTER's systems detected the sale of 2,800 January 18 puts for $1.15 in late-afternoon trading. Open interest in the strike was just 119 contracts at the beginning of the day, so this is a new position.

The put seller represents a belief that URI will be above the $18 strike price at expiration, a level not seen since October of last year. If the stock is below that price at that time, the trader faces the possibility of having to buy the stock, but at an effective price of $16.85. (See our Education section)

URI rose 1.04 percent yesterday to close at $28.07, down more than 40 percent from its 52-week high near $48 in late April. The equipment-rental company gapped down from above $34 on July 18 after reporting second-quarter earnings, and stock reached its 2012 lows under $27 late last week.
Share this article with your friends


Related Stories

URI

Limited gains expected in United Rentals

July 22, 2016

The equipment-rental company surged on strong quarterly results yesterday, but one investor apparently believes that further gains will be limited.

OptionsHouse

Premium Services

Education & Strategy

Keep it simple

One of the appealing features about options trading is that different options can be combined to create a large variety of risk vs. reward profiles.

View more education articles »