Monster Beverage Draws Puts

Monster Beverage is facing a downside position after reporting earnings yesterday.

optionMONSTER’s Depth Charge system has detected the purchase of 2,700 June 65 puts for $2.25 to $2.35 in less than 2 minutes this morning. Open interest was just 772 contracts before the trade appeared, indicating that this is a new position.

These puts lock in the price where MNST shares can be sold no matter how far they might fall. The trader could be using them to hedge a long position or to make an outright bearish bet, but either way they will expire worthless if the stock remains above $65 through mid-June.

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