Adobe Systems has made a stunning move higher, and now traders want to protect those gains.
optionMONSTER’s Depth Charge monitoring program detected the purchase of more than 10,000 March 65 puts today, most of which priced for $1.17 to $1.41. Volume was almost 11 times open interest at the strike, clearly indicating that new positions were initiated.
Puts lock in the price a stock can be purchased, letting investors hedge long positions or wager on a drop. Today’s buyers probably own shares in the software maker and want to guard against a pullback.
— Option Monster