Traders are betting that Mattel will hold its ground for the next six months.
optionMONSTER's tracking systems show that 2,946 October 27 puts were sold in one print for $1.48 yesterday. This is clearly a new position, as the volume was well above the strike's previous open interest.
The put seller collects the $1.48 premium and is looking for MAT to stay above $27 through expiration in mid-October. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)
MAT rose 1.97 percent to $28.92 yesterday. The toy maker has been running higher since hitting a multi-year low of $22.32 on April 2, getting a further boost by positive quarterly results last week.
In late February our InsideOptions Pro service cited bullish buying in Mattel's April 27 calls , which nearly doubled in value just three sessions later.
Yesterday's put selling pushed total MAT option volume to more than double its daily average for the last month.
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