Traders are betting on a floor in shares of Dish Network.
optionMONSTER's monitoring systems detected the sale of 4,000 June 45 puts for $1.30 yesterday. This represents new positioning, as volume was well above the strike's open interest of 2,612 contracts.
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)
DISH slipped 0.17 percent to $47.46 yesterday but is up 17 percent in the last three months. The satellite-network operator beat earnings expectations on April 20 and is expected to announce its next quarerly results on Aug. 4.
Overall option volume in the name was twice its daily average yesterday.
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