Traders are betting that Endo International will hold its ground in the next week.
More than 4,700 September 70 puts were sold for $0.10 to $0.25 yesterday, according to optionMONSTER's tracking systems. This represents new positioning, as open interest in the strike was a mere 29 contracts before the session began.
The traders collect the premium from the option sales and are looking for ENDP to stay above $70 through expiration at the end of next week. If the stock falls below that strike price, these put sellers will be on the hook to buy shares at that level. Investors sometimes sell puts this way in hopes of picking up a stock at an effective discount to existing levels. (See our Education section)
ENDP rose 0.33 percent to $75.23 yesterday. The Dublin-based pharmaceutical and medical-device company was trading above $85 before plunging below $69 at the depths of last month's market selloff, and shares have been bouncing in a range mostly between $72 and $79 since.
Yesterday's put selling made up 97 percent of the total option volume in ENDP, which was 21 times its daily average for the last month.
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