Is International Paper due for pullback?
At least one trader is positioning for a possible drop in International Paper.
optionMONSTER's monitoring program shows that 1,800 Weekly 47 puts expiring on Aug. 26 were sold for $0.38 to $0.45 while 1,200 September 47 puts were purchased for $1.03 yesterday. Volume was below open interest in the near-term contracts, indicating that a bearish position was rolled forward by three weeks and decreased in size.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
IP fell 0.85 percent to $46.56 yesterday but is up 13 percent in the last three months. The paper and packing company's last quarterly report on July 28 was bullish, and its next results are scheduled for pre-market hours on Oct. 27.
Overall option volume in the name was twice its daily average yesterday.
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