Weyerhaeuser has been red hot recently, but one large trader apparently believes that it may be getting ready to cool off.
optionMONSTER's tracking program detected the purchase of 5,000 May 29 puts in one print for $0.45 yesterday. Volume surpassed the strike's open interest of 1,668 contracts, showing that this is a new position.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
WY fell 0.23 percent to $30.98 yesterday but is up 20 percent in the last month. The lumber company reported mixed results on Feb. 5 and gapped down to the $24 level upon completion of its merger with Plum Creek Timber on Feb. 23. The next earnings release is estimated for pre-market hours on April 29.
Overall option volume was about average in WY yesterday.
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