Symantec seen holding onto gains
A large trader apparently believes that downside potential will be limited for Symantec.
optionMONSTER's monitoring programs show that 4,500 November 22 puts were sold in one print for $0.31 yesterday. This is clearly a new position, as open interest in the strike was only 836 contracts before the trade appeared.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
SYMC rose 0.42 percent to $24.19 yesterday and is up 16 percent in the last three months. The cybersecurity company is scheduled to report earnings after the close on Nov. 3.
Overall option volume in the name was twice its daily average yesterday.
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