Market News

November 22, 2016  Tue 6:45 AM CT

A large trader apparently believes that downside potential is limited in SeaWorld Entertainment.

OptionMonster's monitoring programs show that 5,000 September 15 puts were sold in one print for $1 yesterday. This is clearly a new position, as open interest in the strike was just 28 contracts before the trade appeared.

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)

SEAS rose 1.4 percent to $17.35 yesterday and is up 30 percent in the last three months. The amusement-park operator is expected to announce quarterly results in pre-market hours on Feb. 23.

Overall option volume was 4 times greater than average in the name yesterday.

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Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

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