As Sotheby's shares decline today, one trader is betting that any gains will be limited in the next two months.
optionMONSTER systems show that more than 6,200 BID options have traded so far today, compared to a daily average of 483. Only 59 of those are contracts are puts, and most of the action is in the May 40 calls.
A trader sold 5,000 of those calls for $1.20. This is a a new position, as open interest in the strike was just 10 contracts before the session began.
The calls weren't tied to any stock trading identified by our scanners this morning, so they could have been sold naked with an initial bearish bias. But it is more likely that they were traded against an existing long position in a covered call strategy, which is bullish only up to the $40 strike price. (See our Education section)
BID is down 1.12 percent to $37.78. Shares of the auction house were above $40 on the first day of the month in one of only two closes above the strike price in the last year.
More From optionMONSTER