Trader sees ceiling in Dollar General
Call selling sees limited upside in Dollar General.
optionMONSTER systems show that a block of 9,000 July 60 calls was sold for the bid price of $2 this morning. This is clearly a new position as the volume was 10 times the previous open interest in the strike.
The call sale is a bet that DG will not see much or any upside from here. The contracts were almost certainly traded against long shares in covered-call strategy . Some traders use covered calls as a way to sell shares while getting a premium to do so. (See our Education section)
DG is up 0.21 percent at $61.79 in midday trading. The discount retailer was below $54 at the start of the month ahead of earnings results but Friday posted a 52-week closing high of $62.82.
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