Traders are looking for a floor in Dollar General as the discount retailer tries to rebound.
More than 5,000 March 52.50 puts have been sold for $0.36 to $0.25 this morning, according to optionMONSTER’s tracking systems. The volume was well above the strike’s previous open interest of 1,241 contracts, indicating that new positions were established.
These put sellers are looking for DG to stay above $52.50 through expiration in mid-March, at which time they would keep the credit as profit. But if the stock falls below that strike price, the traders would be on the hook to buy shares at that level.
— Option Monster