Cooper Tire & Rubber drew bearish trading yesterday for the second time this week.
A trader bought 10,000 December 24 puts for the ask price of $1.60 and, seconds later, sold 10,000 December 28 calls for the bid price of $1.20, according to optionMONSTER systems. The previous open interest at each strike was below 250 contracts, indicating new positioning.
This could be an outright bearish combination trade opened for a net cost of $0.40. But it could also be a collar on a long-stock position, protecting against a pullback below $24 while giving up any gains beyond $28. (See our Education section)
CTB was up 1.12 percent yesterday to close at $26.20. Shares soared in mid-June with a buyout bid by Apollo Tyres but gapped down from above $30 at the start of the month on news that Apollo had pension problems.
More than 38,000 CTB options changed hands yesterday, more than triple its daily average for the last month. On Monday CTB saw heavy put buying , as reported on InsideOptions Pro.
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