OptionsHouse

Options Trading News

May 24, 2013  Fri 3:47 AM CT

SYMC: SEE CHART GET CHAIN FIND STRATEGIES
Symantec has had a great run, but now one trader apparently thinks that it's going lower.

optionMONSTER's Depth Charge monitoring program detected the purchase of 10,000 June 22 puts for $0.25 and the sale of an equal number of June 21 puts for $0.10. Volume was more than triple the open interest at each strike, indicating that new positions were initiated.

The trade cost $0.15 and will earn a maximum profit of 567 percent if the Internet-security stock closes at or below $21 on expiration. This could be a speculative downside bet or a hedge on a long position. (See our Education section for more on the strategy, which is known as a bearish put spread because it leverages a move between two prices.)

SYMC fell 2.37 percent to $23.06 yesterday. It rallied more than 80 percent between last July and March, only to stall at a key resistance level dating to late 2004. Guidance was also weak after the last earnings report on May 7 as the falling Japanese yen hurt overseas revenue.

Total option volume was 8 times greater than average in the session, with puts outnumbering calls by a similar proportion.
Share this article with your friends


Related Stories

SYMC

Put sale sees Symantec holding gains

September 15, 2016

A large trade sees limited downside risk in the cybersecurity company, which has risen 29 percent in the last three months.

SYMC

Symantec bulls are chasing momentum

September 6, 2016

The cybersecurity company has surged 41 percent in the last three months, and traders are looking for the uptrend to continue.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »