Options Trading News

September 21, 2016  Wed 5:47 AM CT


A trader is positioning for further downside potential in HCA.

optionMONSTER's monitoring program shows that 2,800 Weekly 71 puts expiring this Friday were sold for $0.11 while 2,800 October 71 puts were purchased for $0.82 yesterday. Volume was below open interest in the nearer-term contracts, indicating that a bearish position was rolled forward by four weeks.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

HCA fell 1.19 percent to $74.95 yesterday and is down 3 percent in the last three months. The acute-care hospital operator is expected to release earnings results in pre-market hours on Oct. 25.

Overall option volume was 3 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 7-to-1 ratio.

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