What’s Behind Monsanto Put Sale

An unusual put trade tops today’s option activity in Monsanto.

optionMONSTER systems detected the purchase of 6,640 January 85 puts for the ask price of $0.83 against open interest of 9690 and the sale of 6,000 January 90 puts for the bid price of $1.29. The latter strike’s volume was above open interest of 1,954, so it is a new position.

This could be a new credit spread but, given the size differences and open interests, it appears to be a roll of a short-put position. The trader is then moving short puts to a higher strike, reflecting the rise in the stock price.

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