What's behind puts in Owens Corning
Chris McKhann | firstname.lastname@example.org
The maker of building materials such as Pink insulation is up fractionally on the day at $30.67. OC was below $28 intraday on Monday but has gained every day so far this week, lifting the stock back near last Wednesday's close. Shares have sold off from $38 in late March.
A trader sold 5,000 June 30 puts for $0.96 against open interest of 6,363 while buying the same number of July 28 puts for $1.14, according to optionMONSTER's Depth Charge system.
This could be a diagonal spread, it seems more likely that the trader is rolling the long puts out a month to a lower strike. This could be a protective position that the trader doesn't want to hold in the final three weeks until June expiration, as that is when time decay really kicks in. (See our Education section)