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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)
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The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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