Texas Instruments draws more puts
Texas Instruments drew bearish option activity yesterday for the second session in a row.
optionMONSTER's Depth Charge monitoring system detected the purchase of 5,900 March 49 puts for $1.99 to $2.03. Volume was more than 20 times the open interest in the strike, indicating that new money was put to work, and follows heavy put buying on Friday .
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position. (See our Coaching section)
TXN rose 0.14 percent to $49.95 yesterday but is down 12 percent in the last three months. The chip maker's last quarterly report on Jan. 27 was mixed, and its next results are estimated to come on April 27.
Overall option volume in the name was twice its daily average yesterday. Puts outnumbered calls by a bearish 5-to-1 ratio.
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