Unusual put strategy targeting ASML
Chris McKhann | [email protected]
More than 10,000 ASML options have changed hands so far today, already more than double its daily average in the last month. Almost all of the volume is in a put spread in the options that expire next week.
optionMONSTER systems show that 5,000 December 62.50 puts were sold for $0.80 against open interest of 6,920. At the same time, 5,000 December 65 puts were bought for the ask price of $2.45. Open interest at that strike was just 12 at the beginning of the day, so that was clearly a new position.
The overall action could be a roll, with the trader moving a long put position to a higher strike and into the money, but it seems more likely that this is a vertical spread. The latter would cost the trader $1.65, which is the also the maximum potential loss. The maximum gain of $0.85 would be realized if shares are below $62.50 at expiration.
ASML is up 0.78 percent to $63.19 near midday trading. Shares have risen from $38.80 a year ago and traded up to $64.37 on Monday.