Acadia Health has pulled back in the last week, but one large trader is betting that it will hold current levels.
optionMONSTER's tracking systems show that 4,900 June 65 puts were sold at the same second for $1.75 yesterday. Open interest in the strike was just 333 contracts before the trade occurred, indicating that it is a new position.
The put seller collects the $1.75 premium and is looking for ACHC to stay above $65 through expiration in mid-June. 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)
ACHC was down 2.21 percent to $66.50 yesterday, right at its 100-day moving average. The company, which operates various types of treatment facilities, broke below a narrow range after reporting earnings on April 28 and fell beneath its rising 50-day moving average this week.
Yesterday's put sale made up almost all of the option volume in Acadia, which has averaged just 50 contracts a day for the last month.
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