Huge call selling hits Verizon

Huge call selling leads heavy and unusual option trading in Verizon today.

optionMONSTER systems show that a trader sold 40,000 April 49 calls for the bid price of $1.05. This is clearly a new position, as the volume was 8 times the previous open interest in the strike.

The call seller is betting that VZ won’t rise much above $49 through expiration in mid-April. They could have been sold naked, but it is far more likely that the contracts were traded against long shares as a covered call. That would be bullish up to, but not beyond, that $49 strike price.

Continue Reading at Option Monster

— Option Monster

You May Also Like

About the Author: Option Monster