29 OCTOBER 2014www.optionmonster.com
Floor seen in Century Aluminum
Edited by : AL CIRCLE
1 min read
Century Aluminum reports earnings tomorrow afternoon, and one trader apparently believes that declines will be limited through next spring.
optionMONSTER's tracking systems yesterday detected the sale of 2,000 March 22 puts for $1.45, below the bid price at the time. This is clearly a new position, as open interest in the strike was just 918 contracts before the trade appeared.
The put seller collects the $1.45 credit and is looking for CENX to stay above $22 through expiration in mid-March. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level.
CENX fell 4.27 percent to $26.90 yesterday but is up 200 percent in the last year. The aluminum producer pulled back after hitting a six-year high of $29.54 on Sept. 5 but found support at the $22 level earlier this month and has been rebounding since. The company is scheduled to release quarterly results tomorrow after the market closes.
Yesterday's total option volume in the name was 3.5 times its daily average for the last month. Overall puts outnumbered calls by nearly 4 to 1.
optionMONSTER's tracking systems yesterday detected the sale of 2,000 March 22 puts for $1.45, below the bid price at the time. This is clearly a new position, as open interest in the strike was just 918 contracts before the trade appeared.
The put seller collects the $1.45 credit and is looking for CENX to stay above $22 through expiration in mid-March. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level.
CENX fell 4.27 percent to $26.90 yesterday but is up 200 percent in the last year. The aluminum producer pulled back after hitting a six-year high of $29.54 on Sept. 5 but found support at the $22 level earlier this month and has been rebounding since. The company is scheduled to release quarterly results tomorrow after the market closes.
Yesterday's total option volume in the name was 3.5 times its daily average for the last month. Overall puts outnumbered calls by nearly 4 to 1.
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