Put sellers return to Northstar Realty
Traders were selling puts in Northstar Realty Finance yesterday for the second time this week.
optionMONSTER systems show that 3,000 December 16 puts were sold in one print for the bid price of $0.25. Previous open interest in the strike was just 21 contracts, showing that this is a new position.
The put seller is looking for NRF to stay above $16 through expiration in mid-December, but he or she will be on the hook to buy shares if they fall below that strike price. The trade follows the sale of 1 7,000 December 18 puts on Tuesday. (See our Education section)
NRF fell sharply yesterday on heavy volume, down 3.13 percent to close at $18.26. The real-estate investment trust reached at an all-time intraday high of $18.94 on Wednesday.
Total option volume in Northstar topped 6,000 yesterday, more than 6 times its daily average for the last month.
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