A trader is betting on a floor in shares of Dow Chemical, which are at six-year highs.
optionMONSTER's tracking systems detected the sale of 1,817 February 40 puts for $0.63 this morning. This is a new position, as open interest in the strike was 706 contracts before the trade appeared.
The put seller will keep the $0.63 credit as profit if DOW remains above $40 through expiration in mid-February. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)
DOW is up 0.71 percent to $44.21 today after peaking at $44.57 on Dec. 19, its highest price since December 2007. Shares broke out of a tight range with resistance around $40 early this month and have been running higher since.
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