OptionsHouse

Options Trading News

July 25, 2013  Thu 3:16 AM CT

UPS: SEE CHART GET CHAIN FIND STRATEGIES
A large trade is looking for a floor in shares of United Parcel Service.

optionMONSTER systems detected the sale of 10,000 September 85 puts for the bid price of $1.34. This is clearly a new position, as the strike's open interest was just 456 contracts before the trade appeared.

The put seller will keep the $1.34 credit as profit if UPS holds above $85 through expiration in mid-September. But the trader is taking on the risk of having to buy shares if they are below that strike price. (See our Education section)

UPS finished yesterday at $86.98, down 0.61 percent. The shipping giant has been trending higher since falling below $70 in November, hitting a peak of $91.78 two weeks ago.
Share this article with your friends


Related Stories

UPS

How bullish traders are betting on UPS

September 19, 2016

The delivery giant, which has fallen 3 percent in the last month, is scheduled to report earnings in pre-market hours on Oct. 27.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »