Up or down, one investor expects a move from Health Care REIT.
optionMONSTER's screeners detected the purchase of 2,000 October 57.50 calls for $0.90 and 2,000 October 57.50 puts for $0.80. Volume exceeded open interest at both strikes, indicating that new positions were implemented.
The trade cost $1.70 to open and will make money from volatility increasing in the slow-moving nursing-home stock. Option premiums have already been climbing as the shares retreat from an all-time high above $62 on Aug. 1.
HCN rose 0.96 percent to $57.68 yesterday. Known as a straddle, the option position will lose money if the stock remains between $55.80 and $59.20 through expiration, while earning profit outside that range. (See our Education section)
Some 4,500 contracts changed hands in the session, more than 7 times average for the name.
Options Trading News
Social Media
Follow optionMONSTER for news and updates
Premium Services
-
Semi-active traders looking for simple calls and spreads (5 per week).
Learn More -
Entry-to-mid level traders looking for full circle trade analysis (1 per week).
Learn More -
Tailored, one-on-one education designed and led by Jon & Pete (3 months and up)
Learn More
Education & Strategy
So why do we bother with spreads?
Trading options allows for far deeper levels of complexity than stocks. And while you may never fully venture all the...
