Is Synchrony Financial headed for a drop?
Traders apparently believe that a drop may be coming in Synchrony Financial.
optionMONSTER's market scanner detected the purchase of more than 26,000 August 24 puts for $0.25 to $0.30 on Friday. Volume was more than 86 times the open interest in the strike, showing that these are new positions.
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)
SYF fell 0.64 percent to $28.12 on Friday but is up 9 percent in the last week. The financial services firm, formerly GE Capital, is scheduled to report earnings before the market opens on July 22.
Overall option volume in the name was 3 times greater than average on Friday. Puts outnumbered calls by a bearish 14-to-1 ratio.
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