OptionsHouse

Options Trading News

July 23, 2014  Wed 9:19 AM CT

MDT: SEE CHART GET CHAIN FIND STRATEGIES
A large trader apparently believes that Medtronic will hold firm through its next earnings report.

optionMONSTER systems detected the sale of 5,180 Weekly 61.50 puts that expire on Aug. 29 for $0.90. This is clearly a new position because the volume, all in one print, was well above the strike's previous open interest of just 125 contracts.
 
The put seller is looking for MDT to stay above $61.50 in the next 37 days. The trader keeps the $0.90 as profit but takes on the risk of having to buy shares if they are below the strike price. (See our Education section)

MDT is up 0.14 percent to $62.80 this morning. The medical-device maker hit a 52-week high of $64.67 at the end of June but dipped below $62 at the end of last week.

The company is scheduled to release quarterly results on Aug. 19, eight sessions before today's short puts expire.
Share this article with your friends


Related Stories

MDT

Medtronic faces downside trade

May 6, 2015

The provider of medical devices surged about 30 percent between October and February after completing its purchase of Covidien, but shares are now back under their 50-day moving average.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Education & Strategy

Basics of synthetic positions

Before we get into the 6 basic synthetic positions, there are some basic principles that are necessary to review and make it easier to understand Synthetic Positions. By clearly understanding these concepts, Synthetic Positions become rather easy...

View more education articles »