Downside position targets Franklin


A put spread is positioning for a drop in investment firm Franklin Resources.

optionMONSTER systems show that a trader bought 1,000 November 50 puts for $1.53, above the listed ask price at the time, and sold the same number of November 45 puts for $0.40 this morning. The volume was more than twice the open interest at each strike, indicating that this is new activity.

The trader paid $1.13 to establish this vertical spread , which is the maximum risk on the trader. The maximum gain is $3.87 if shares are below $45 at expiration. (See our Education section)

BEN is down 1.32 percent to $50.99, sitting in the middle of its recent range. Shares were down at support at $45 at the end of August.

Total option volume in the name is already double its full-session average for the last month. Overall calls outnumber puts by more than 32 to 1.

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