Range play in DaVita HealthCare

One trader apparently believes that shares of DaVita HealthCare will remain range-bound.

optionMONSTER systems show that corresponding blocks of 1,500 traded in the September 75 calls for $0.65 and 67.50 puts for $0.45, both apparently sold. This is new positioning, as the volume was far above open interest below 100 contracts in each strike.

The trade, known as a short strangle, takes in a credit of $1.10. This short-volatility position is betting that DVA will stay between $67.50 and $75 through expiration in mid-September.

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