Big telecoms are at long-term highs, and traders want to protect their gains.
optionMONSTER’s Depth Charge monitoring program detected bearish put spreads in Verizon Communications and AT&T. They were very similar in structure and occurred around the same time, suggesting that they were the work of a single large investor.
The first transaction appeared in VZ, with 5,000 December 45 puts bought for $0.79 and an equal number of December 41 puts sold for $0.21. The investor paid $0.58 and will earn a profit of 590 percent if the stock closes at or below $41 on expiration. VZ is currently down 0.54 percent to $46.32 in morning trading.
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