A large trade is betting that current levels will hold firm for Procter & Gamble in coming weeks.
optionMONSTER's monitoring systems detected the sale of 3,000 April 83 puts for $1.20 at the same second yesterday. This is clearly a new position, as open interest in the strike was just 171 contracts before the trade appeared.
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)
PG fell 0.45 percent to $82.31 yesterday but is up 3 percent in the last three months. The consumer-products giant reported mixed results on Jan. 26 and is scheduled to announce its next earnings numbers in the pre-market on April 26, well after yesterday's short puts expire.
Overall option volume was about average in PG yesterday.
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