Safeway is just off eight-month lows, and one trader is looking for the stock to make a big move in either direction.
SWY is down 0.45 percent to trade at $17.75 this morning. On Monday the supermarket chain saw its lowest close since mid-October. Shares have traded down from above $22 in the last two months.
A trader bought 5,000 December 16 puts for the ask price of $1, according to optionMONSTER's Depth Charge system. The volume was more than twice the open interest at that strike, so this is a new position.
Roughly a minute after the options changed hands, the biggest block of SWY stock traded, with 155,000 shares bought for $17.85. The delta of the options was -0.32, which means that the overall trade is a long-volatility position that could profit if SWY moves sharply higher or lower. (See our Education section)
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