Leggett & Platt draws bearish play
Leggett & Platt is near all-time highs, but a large trade is positioning for a possible pullback by early next year.
optionMONSTER's Depth Charge system shows that 7,500 January 40 puts were bought the ask price of $0.60, while 7,500 January 35 puts were sold for $0.05. This is a new vertical spread , as total open interest in the name was just 5,719 contracts before the trade appeared.
The bearish spread cost the trader $0.55, which is the maximum potential loss. The maximum potential gain is $4.45 with the stock at $35 by expiration in mid-January, but the trader would be on the hook to buy shares if they fall below that level. (See our Education section)
LEG was up 0.17 percent to $42 yesterday, just off its lifetime closing high of $42.09 from last Friday. The hardware manufacturer was down at support at $33 in mid-October.
More From optionMONSTER
