Market News

July 23, 2014  Wed 9:19 AM CT

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.
News Archives

Education & Strategy

Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

More education articles »