Lorillard regained the ground it lost on Wednesday after earnings results, and today one trader is betting on a near-term floor.
LO is up 0.5 percent this morning trading at $135.22. The tobacco company collapsed Wednesday morning after its quarterly report but rebounded to close that day just shy of $130 and then gained again yesterday.
More than 6,200 LO options have traded already today, compared to a daily average of 1,200. optionMONSTER's systems detected the sale of 4,600 June 120 puts in one print for $1 against previous open interest was 1,200 contracts, so this is a new position.
The put selling is a bet that the rebound of this week will stick, or at least that LO won't collapse below that strike in the coming weeks. The trader takes the credit as profit but risks having to buy the stock if it trades below the strike. (See our Education section)
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