News Corp. has been sliding since hitting an all-time three weeks ago, and one trader apparently expects the stock to remain below current levels.
NWSA is down 0.54 percent this morning to $23.76. The media conglomerate hit a high of $25.50 on Oct. 18 and has been losing ground since. Shares seem to be breaking down but are still up from 2012 lows around $18.30 tested in early June.
Today’s option volume of more than 10,000 contracts is more than 5 times its daily average over the last month. A trader sold 4,769 December 23 calls for $1.40 and bought the same number of December 20 puts for $0.10. The volume was more than open interest at each strike.
In the minutes after those options changed hands, the largest block of NWSA stock traded as 476,900 shares were bought for $23.83. So it appears that a trader was buying a combination option trade against the stock.
— Option Monster