Investors think there is no going back for SBA Communications.
optionMONSTER’s monitoring systems detected the sale of 10,000 March 50 puts for $0.80. Volume was more than 15 times previous open interest at the strike.
The investor is now obligated to buy shares in the owner of wireless-communications towers for $50 if they close below that level on expiration. If they remain above it, he or she will keep the premium and the options will expire worthless.
Selling puts is a common strategy when traders like a company because it lets them get long on a pullback, but they also don’t have to expend capital buying shares right away.
— Option Monster