A large trader is positioning for a potential drop in shares of Lamar Advertising.
optionMONSTER systems detected the sale of 16,955 April 46 puts for $0.15 against previous open interest of 30,444. At the same time, the trader bought the same number of the May 40 puts for the ask price of $0.35 against open interest of just 25 contracts at that strike in what is clearly a new position.
The trader appears to be closing the April contracts, which expire a week from today, and rolling the position to a lower strike in May for a net cost of $0.20. The new long puts could be making an outright bearish bet or hedging a long position , but either way they will expire worthless if the stock remains above $40 through mid-May. (See our Education section)
LAMR fell 1.75 percent to $49.87 yesterday, its lowest close since Feb. 21. The outdoor-advertising company hit a 52-week high of $54.12 in early March.
More than 39,000 LAMR options changed hands overall yesterday, compared to the daily average of 7,741 over the last month.
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