Traders apparently believe that Mondelez will hold its ground through early next year.
optionMONSTER's market scanners show that about 5,000 January 42 puts were sold for $0.61 to $0.64 this morning. Volume surpassed open interest of 2,596 contracts, an indication that new money was put to work.
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 the risk of a big drop is limited. (See our Coaching section)
MDLZ is down 1.24 percent to $43.96 in morning trading but is up 5 percent in the last three months. The snack and beverage company is expected to report earnings on Feb. 10.
Overall option volume was about average in MDLZ.
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