A large trade is betting that downside potential will be limited in Mondelez well into 2016.
optionMONSTER's market scanners show that 20,000 June 37 puts were sold in one print for $1.39 this morning. This is clearly a new position, as open interest in the strike was only 329 contracts before the session began.
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 up 0.35 percent to $42.88 in early trade but is down 4 percent in the last week. The snack and beverage company's next quarterly results are estimated for Feb. 10.
With today's put sale, overall option volume in hte name is triple its full-session average.
More From optionMONSTER