Trade bets on sharp move in VeriFone

optionMONSTER

As shares of VeriFone surge today, one trader is betting on more volatility.

A trader bought 2,000 December 31 puts in one print for the ask price of $1.10, according to optionMONSTER's Depth Charge system. The strike's open interest was 947 at the start of the session, so this is a new position.

About a minute later, a block of 70,000 PAY shares was bought for $32.1429. The combination of stock and options creates an overall position that is delta-neutral , which would profit if VeriFone moves much higher or lower. (See our Education section)

PAY is up 6.95 percent to $32.33, right around overhead resistance that has held for the last three months. The maker of credit-card readers was down at a 52-week low of $27.33 a the start of October. On the other end of the spectrum, its 52-week high above $55 was set in mid-April.

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