Put buyer takes aim at Realty Income
At least one trader is positioning for more downside potential in Realty Income.
OptionMonster's tracking program detected the purchase of 2,010 March 55 puts in one print for $2.35 yesterday. Volume was more than 8 times the open interest in the strike before the trade occurred, showing that this is a new position.
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)
O fell 2.53 percent to $57.74 yesterday and is down 15 percent in the last three months. The real-estate investment trust is expected to announce its next quarterly results after the close on Feb. 8.
Overall option volume was 8 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 3-to-1 ratio.
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