Masco's shares have yet to recover from a steep drop after its last earnings report, but one trader is counting on a floor beneath the stock.
optionMONSTER's systems show that 2,640 July 9 were sold at the same second for $0.30. Open interest was just 84 contracts at the beginning of the day, indicating that this is new selling.
MAS slipped 0.83 percent yesterday to close at $11.88. The home-improvement product company gapped lower from above $13 after disappointing quarterly results on Feb. 13, and shares have been trading sideways since then while holding support at their 50-day moving average.
Yesterday's put seller apparently believes that the stock will be above $9 when the options expire on July 20. If MAS is below that strike price, the trader will be required to buy the stock but will also keep the $0.30 credit from the put sale. (See our Education section)
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