Level 3 Communications has pulled back from multi-year highs, but one trader is looking for current levels to hold.
optionMONSTER's tracking systems detected the sale of 2,000 January 48 puts for $1.50 to $1.80 early today. Open interest was just 383 contracts before the trade appeared, showing that it is a new position.
The put seller collects the option premium and is looking for LVLT to trade above $48 in coming weeks. If the stock is below that strike price at expiration in mid-January, the trader will face the obligation to buy shares at that level. (See our Education section)
LVLT is off 0.13 percent to $47.79 this morning. The communication-services company reached six-year highs above $50 in November but has been drifting lower since.
Total option volume in LVLT is already well above its full-session average for the last month.
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