Market News

January 10, 2017  Tue 6:45 AM CT

Traders are positioning for more downside potential in Teva Pharmaceutical.

Our tracking program show that more than 5,500 March 30 puts were purchased for $0.50 to $0.58 yesterday. Volume was well above the strike's open interest of 1,507 contracts, showing that this is fresh buying.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

TEVA fell 0.09 percent to $35.10 yesterday and is down 23 percent in the last three months. The drug company reported bearish results on Nov. 15 and is expected to announce its next quarterly numbers in pre-market hours on Feb. 9.

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