Traders see little downside in eBay
OptionMonster Staff | [email protected]
OptionMonster's monitoring systems detected the sale of 3,200 Weekly 28 puts expiring on Feb. 3 for $0.58. Volume was more than 14 times open interest at the strike, which indicates new money was put to work.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think the risk of a big drop is limited. (See our Education section.)
EBAY fell 1.69 percent to $30.75 yesterday but is up 6 percent in the last month. The last quarterly report on Oct. 19 was mixed. The next quarterly report is scheduled for after the close on Jan. 25.