TransDigm receives show of support
A large trade is looking for TransDigm to hold its ground in the next month.
optionMONSTER's monitoring programs show that 3,275 March 180 puts were sold for $3.40. This is clearly a new position, as open interest in the strike was a mere 46 contracts before the trade occurred.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Coaching section)
TDG fell 5.2 percent to $205.24. The aircraft-component manufacturer is expected to announce quarterly results on May 3.
Overall option volume in the name was 6 times greater than average yesterday.
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