Traders see no going back for Assured Guaranty
Put sellers think Assured Guaranty will hold its recent gains.
optionMONSTER's monitoring programs detected unusual activity in the September 13 puts, with more than 4,100 trading against open interest of 1,224 contracts. More than 2,500 traded in the largest block for $0.34.
AGO rose 0.43 percent to $14.03 in morning trading. Two weeks ago, shares were near $11.50 -- a long-term support level going back to December. Their 52-week high of $19.04 was hit in mid-March.
The put selling is a bet that AGO will hold up above the strike of $13 through expiration on Sept. 21.
The stock spent most of the last three months below that price, but crossed above it week ago. Traders write puts when they like a company but don't want to use cash getting long. See our Education Section for more on the strategy.
The trade accounted for almost all the option volume in AGO so far today.
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