Annaly Capital shares are higher this afternoon, but long-term put buying leads its option activity today.
NLY is up 0.8 percent to $16.60, on pace for its highest close since the end of February. Shares were $1 lower a month ago.
A trader bought 8,000 January 2014 8 puts for the ask price of $0.50, according to optionMONSTER's systems. There was no open interest at that strike previously, so this is a new position.
The put buying may be tied to NLY shares, as our systems detect large stock trades in the surrounding 20 minutes with several prints of more than 240,000. So there are a number of possible strategies behind today's puts, in the following order of likelihood: an outright bearish bet, a delta-neutral long volatility play, or a long-term hedge. (See our Education section)
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...
