OptionsHouse

Options Trading News

August 1, 2012  Wed 11:15 AM CT

MAS: SEE CHART GET CHAIN FIND STRATEGIES
Masco fell sharply yesterday after disappointing second-quarter results, but one trader apparently believes that the selling has been overdone.

More than 11,000 September 12 puts traded in a strong selling pattern in less than 5 minutes, according to optionMONSTER's tracking systems. Open interest in the strike was just 446 at the beginning of the day, so this is clearly new activity.

The put selling represents a bet that the stock will hold above the $12 strike price through expiration on Sept. 21. The trading pushed overall option volume in the name to nearly 7 times its daily average for the last month.

MAS is down 0.67 percent to $11.95 in early afternoon trading. The manufacturer of home-improvement and building products missed earnings and revenue estimates Monday night, citing higher costs and weakened demand, and gapped down from above $13 the next morning. (See our Education section)
Share this article with your friends


Related Stories

MAS

Housing bulls are turning to Masco

July 24, 2015

Housing has come back to life with a raft of positive data, and yesterday the bulls piled into this provider of building materials.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Stops

With the growing popularity of the Advantage Point newsletter, we are picking up new members every single day. So, the powers that be have asked me to stray away from our Option Theory and Strategy topics and discuss a couple of topics related to our weekly trade ideas. This week we are going to talk about how to set and execute our stops.

View more education articles »