Options Trading News

September 24, 2013  Tue 9:41 AM CT

Tyco has pulled back from multi-year highs, but one trader apparently believes that further losses will be limited in the next two months.

optionMONSTER's tracking systems detected the sale of 1,930 November 33 puts for an average price of $0.59 in less than a minute this morning. This is a new position, as there was no open interest in the strike before the trade appeared.

The put seller is looking for TYC to stay above $33 through expiration in mid-November. If it falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

TYC is up fractionally to $34.58 this morning. The industrial conglomerate, whose products range from burglar alarms to sprinkler systems, has fallen since hitting resistance near 12-year highs last week and is trying to hold support at its 50-day moving average.

Today's put sale makes up almost all of the option volume in TYC so far, already pushing it to 2.5 times its daily average for the last month.
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