A large put sale is looking for a floor in shares of Disney through the end of the year.
optionMONSTER’s Depth Charge system systems detected the sale of 4,170 Weekly 87 puts that expire on Dec. 26 for $1.01 this morning. Open interest in the strike was a mere 46 contracts before the trade appeared, so it is clearly a new position.
Put sellers collect premium in exchange for “insuring” buyers against a pullback in a stock. So today’s trader is willing to buy 417,000 shares if DIS falls below that strike price, allowing the put buyer to sell the stock at a fixed price no matter how far it might fall.
— Option Monster