OptionsHouse

Options Trading News

May 8, 2013  Wed 4:14 AM CT

EMC: SEE CHART GET CHAIN FIND STRATEGIES
A large put trade topped yesterday's option activity in cloud-computing company EMC.

optionMONSTER systems show that a trader bought 5,000 October 23 puts for the ask price $1.31 against previous open interest of 6,740. At the same time, he or she sold 5,000 October 19 puts for the bid price of $0.26 in volume well above that strike's open interest of 1,690 contracts, clearly a new position.

This could be the work of a trader rolling a short-put position to the lower strike, but it is much more likely that it is a new vertical spread that is looking for EMC to fall below $19 by mid-October. (See our Education section)

EMC finished the day at $23.12, losing 0.73 percent. It was at a 52-week low of $21.45 last month before the company's last earnings report. 
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »