Supervalu continued to draw bullish option action yesterday even as the stock posted another new closing low.
SVU finished the day at $2.28, down 8.06 percent. The supermarket operator tumbled at the end of last week from above $5 on disappointing earnings .
Options have been active in the name since then, with heavy put trading on Monday and call buying yesterday morning. But the largest volume so far this week has been in put selling.
optionMONSTER's systems show that a trader sold 30,000 January 1.50 puts for $0.40 in the final hour of yesterday's session. Open interest in the strike at the start of the day was just 235 contracts, so this was new opening position.
The put selling is betting that SVU will remain above $1.50 at expiration. (See our Education section)
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