Waste Management drew bearish option activity on Friday, two days after its stock fell sharply with downgrade from Morgan Stanley.
optionMONSTER's Depth Charge system detected the purchase of about 4,120 July 32, all of them going for $0.35 at the same second. Open interest was 1,466 at the start of the session, so this is fresh buying.
Waste Management rose 1.51 percent on Friday to end the week at $32.37. The garbage-disposal company has regained about half of the ground lost on Wednesday it dropped more than 5 percent after a Morgan Stanley analyst lowered the stock's rating to "underweight" from "equal weight." The move was made in anticipation of a weak second-quarter earnings report on July 26.
Friday's put buying was not tied to any specific stock trades identified by our systems, though it could have been a protective hedge on a long position established earlier. It could also be a straight bearish bet that WM will be down more than 2.2 percent when the puts expire at the end of this week. (See our Education section)
Total option volume in the name was 6,391 on Friday, more than open interest of 4,743. Overall WM puts outnumbered calls by 4 to 1.
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