Unusual put trading dominates the option activity in AT&T so far today.
A trader bought 13,650 October 33 puts for the ask price of $0.23 and sold 69,650 October 31 puts for $0.06. Three minutes later, another 13,650 October 33 puts were bought for $0.24, and 13,650 October 31 puts were sold for $0.06. The volume at each strike was above the previous open interest at each strike, indicating new activity.
The trader is opening a ratio spread , which is a relatively low-cost way of betting on a move down. He or she also takes on the risk of having to buy shares if they are below the lower strike . (See our Education section)
T is down 0.89 percent to $34.44 in midday trading. It was at a high of $39 in late April but bounced off support near $33 two weeks ago.
The telecom giant has seen more than 139,000 options change hands overall so far today, already more than 5 times its daily average for the last month.
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