Market News

October 19, 2016  Wed 7:16 AM CT

A large trade is betting on an end to the recent slide in J.C. Penney.

optionMONSTER's tracking programs detected the sale of 4,500 January 9 puts for $1.15 and $1.16 at the same time yesterday. Volume surpassed the strike's open interest of 2,263 contracts, showing that this is new positioning.

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 that the risk of a big drop is limited. (See our Education section)

JCP fell 0.47 percent to $8.48 yesterday and is down 16 percent in the last month. The department-store operator is scheduled to report earnings in pre-market hours on Nov. 11.

Overall option volume was about average in JCP yesterday.

News Archives

Education & Strategy

Call rolls made easy with OptionsHouse

Rolling money from one contract to another is one of the most common actions taken by option traders.

More education articles »