Tyco has been falling for the last month, but traders are betting that the bloodletting is coming to an end.
optionMONSTER's tracking systems detected the sale of 2,081 October 32 puts this morning for $0.59 to $0.56. The volume was well above the strike's previous open interest of 469 contracts, showing that this is new activity.
These short puts are looking for TYC to stay above $32 through expiration in mid-October. If the stock falls below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)
TYC is up 0.49 percent to $33.09 today. The industrial conglomerate, whose products range from burglar alarms to sprinkler systems, has been trending lower since trading near $36 in early August but seems to have found support at the $33 level in recent days.
Total option volume in the name is already quadruple its daily average for the last month.
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