AT&T bounced yesterday after falling with its earnings report in the previous session, and one trader is betting on a floor beneath the shares.
optionMONSTER's systems show that a trader sold 20,000 September 35 puts for the bid price of $0.70. Open interest at the beginning of the day was few than 10,000 contracts, indicating that this is a new position.
The put seller is betting that T will hold above that $35 strike price through the September expiration. The trader is also showing a willingness to buy the shares if they trade below that level for an effective price of $34.30. (See our Education section)
T gained 2.02 percent to finish the day at $35.33 as shares continued to trend higher since hitting their 52-week low under $28 last September. The telecom giant closed at $35.71 on the first trading day of July and almost matched that price last Wednesday.
More From optionMONSTER
Gold and silver prices are hitting new multi-year lows to start off the week, and Louise Yamada, head of LY Technical …