A large trade is positioning for a possible drop in General Electric.
optionMONSTER's tracking program detected the purchase of 7,500 August 30.50 puts for $0.24 at the same second yesterday. Volume was more than 10 times open interest at the strike, showing that this is a new position.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
GE slipped 0.1 percent to $31.25 yesterday but is up 7 percent in the last month. The conglomerate beat quarterly estimates on July 22 but fell because of weakness in industrial orders and other metrics.
Overall option volume was about average in GE yesterday.
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