One trader apparently believes that Dish Network could pull back to the lower end of its recent range.
optionMONSTER tracking systems detected the purchased of 3,992 November 47 puts in one print for the ask price of $1.90 on Friday. This is clearly a new position, as open interest in the strike was a mere 145 contracts before the trade appeared.
These puts lock in the price where the trader can sell the stock for the next five weeks no matter how far it might fall. They could be hedging a long position or making an outright bearish bet, but either way the the contracts will expire worthless if shares remain above $47 through mid-November. (See our Education section)
DISH rose 0.42 percent to $47.88 on Friday and is up more than 31.5 percent this year. The satellite-TV operator has been bouncing between about $44 and $49 since July.
Overall puts in the name outnumbered calls by more than 4 to 1.
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