Mobileye has rallied sharply in recent months, but one large investor is positioning for a possible drop.
optionMONSTER's monitoring system detected the purchase of 3,500 June 40 puts for $3.10 to $3.20. Volume was more than 13 times open interest at the strike, which indicates new money was put to work.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
MBLY rose 0.75 percent to $40.31 yesterday and is up 41 percent in the last three months. The Israel-based company, which manufactures traffic cameras installed in cars, is scheduled to report earnings before the market opens on May 5.
Overall option volume was about average in MBLY yesterday.
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