Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 8, 2012  Thu 2:45 AM CT

GGB: SEE CHART GET CHAIN FIND STRATEGIES
Brazilian steel company Gerdau fell with the rest of the market yesterday, but one trader apparently believes that further losses will be limited.

A trader sold 3,000 March 7 puts for the bid price of $0.15, according to optionMONSTER's systems. There was no previous open interest at that strike, so this is a new position.

GGB lost 2.3 percent to close at $8.94 yesterday. It bounced at $8.51 on Nov. 1 after reporting third-quarter earnings but remains below its 52-week high of $10.82 reached in mid-September.

The put selling is a bet that GGB will hold above $7 in the coming months. While the position does have an initial bearish bias (positive delta), it can profit with the stock anywhere above $6.85 at that time. (See our Education section)
Share this article with your friends


Related Stories

GGB

Put sale sees Gerdau holding firm

July 18, 2014

The Brazilian steel company dropped sharply in yesterday's market selloff, but one large trader apparently believes that further losses will be limited.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER