Why one trader is selling puts in Visa
Chris McKhann | firstname.lastname@example.org
V is down 0.3 percent to trade at $123.29 today. Shares of the credit-card giant have doubled since late 2010 and peaked at $127.47 last Thursday.
More than 5,000 July 120 puts have changed hands against open interest of 2,395 contracts, according to optionMONSTER's systems. A large print of 3,891 was sold for $0.80.
This put seller believes that V will hold above $120 through the end of next week. He or she is also willing to buy shares if the price is below the strike. (See our Education section)