Put sale bets on floor in Genworth
Genworth Financial has lost half its market value in the last year, but one large trade is betting that further declines will be limited.
optionMONSTER's tracking systems detected the sale of 8,330 December 6 puts in one print for the bid price of $0.23 right out of the gate this morning. This is clearly a new position, as open interest in the strike was just 1,211 contracts before the trade occurred.
The put seller collects the $0.23 premium and is looking for GNW to stay above $6 through expiration in mid-December. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)
GNW is unchanged at $8 in early trade but down some 53 percent in the last 12 months. The insurance firm gapped up after its last earnings report in late April but has since given up those gains and fallen back into a tight range that has been in place for most of the year.
Today's put sale makes up all but a handful of the total options traded in the name so far. That volume is 2.5 times its full-session average for the last month.
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