Verizon had a good week despite slipping on Friday, but the option activity was in a large put trade.
VZ was down 1 percent on Friday, finishing at $43.72. The wireless carrier had climbed from below $43 in the previous week and support down near $42 at the end of August.
A trader bought 10,000 October 42 puts against open interest of 10,321 while selling 20,000 October 38 puts, according to optionMONSTER's systems. The previous open interest at the latter strike had been just 3,000, so that was clearly a new position.
This trade could rolling a short position down and doubling the number of contracts, but it is far more likely to be a new ratio spread. In that case, the trader is looking for VZ to trade down to $38 but is willing to buy shares below that level. (See our Education section)
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