Traders bet on end to slide in Tyco
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's tracking systems detected the sale of 2,081 October 32 puts this morning for $0.59 to $0.56. The volume was well above the strike's previous open interest of 469 contracts, showing that this is new activity.
These short puts are looking for TYC to stay above $32 through expiration in mid-October. If the stock falls below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)
TYC is up 0.49 percent to $33.09 today. The industrial conglomerate, whose products range from burglar alarms to sprinkler systems, has been trending lower since trading near $36 in early August but seems to have found support at the $33 level in recent days.
Total option volume in the name is already quadruple its daily average for the last month.