Call selling sees limited upside in Sony.
A trader sold 10,000 August 18 calls in one print for $0.15 yesterday, according to optionMONSTER systems. Open interest in the strike was just 109 contracts before the trade appeared, so it is clearly a new position.
The calls weren't tied to any trading in the underlying shares identified by our scanners in the session, so they could have been sold naked. But they were far more likely traded against an existing long position in a covered-call strategy , which would bullish up to the $18 strike price but not beyond. (See our Education section)
SNE fell 0.83 percent to $16.65 yesterday. The Japanese electronics manufacturer has support at $16, last tested three weeks ago, and was last above $18 in late April.
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