As Hartford Financial hovers at five-year highs, one trader is betting that any pullbacks will be limited in coming months.
A print of 1,600 March 33 puts was sold for the bid price of $0.68 on Friday, according to optionMONSTER's tracking systems. This is clearly a new position, as the volume was above the strike's previous open interest of 1,118 contracts.
The put seller will keep the $0.68 credit as profit if HIG remains above $33 through expiration in mid-March. If the stock falls below that level, the trader will be on the hook to buy shares at an effective price of $32.32 once that credit is included. (See our Education section)
HIG slipped 0.66 percent on Friday to close at $36.33 but has not traded below $33 since mid-October. The insurance and financial services company has been working its way higher all year and peaked at $36.76 a week ago, its highest price since October 2008.
The company drew bullish buying on Dec. 20 in the June calls, as reported on InsideOptions Pro.
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