Someone is slapping protection on United Technologies with the aerospace stock pennies below its record high.
optionMONSTER's Depth Charge monitoring system detected the purchase of 4,000 November 90 puts for $1.47 and the sale of an equal number of November 75 puts for $0.33. Volume is more than 6 times previous open interest at both strikes.
Known as a bearish put spread , the trade cost $1.14. It will earn more than 1,200 percent if the aerospace stock falls to $75 or lower on expiration. (See our Education section)
UTX is up 0.31 percent to $100.14 in morning trading, and is up 22 percent so far this year. The shares hit an all-time high of $100.70 on Friday before pulling back to close below $100, which could make some chart watchers believe that they're topping out for now.
The stock troughed around $75 in November before launching on its current run, and today's spread is looking to that level as potential support in the event of a drop. Earnings come out next Tuesday, July 23, before the opening bell.
Total option volume is triple the daily average so far today, with puts outnumbering calls by more than 4 to 1.
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