Market News

January 4, 2017  Wed 7:18 AM CT

A big trade is positioning for more potential declines in Viacom.

Our market scanners show that 18,750 January 32.50 puts were sold for $0.15 while 18,750 March 32.50 puts were purchased for $1 yesterday. Volume was below open interest in the January contracts, indicating that a bearish position was rolled forward by two months for $0.85.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

VIAB rose 2.28 percent to $35.90 yesterday but is down 8 percent in the last three months. The media company, which reported mixed results on Nov. 9, is scheduled to announce its next quarterly numbers before the market opens on Feb. 9.

Overall option volume was 9 times greater than average in VIAB yesterday. Puts outnumbered calls by a bearish 33-to-1 ratio.

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