A single put trade dominated the option activity in Dish Network yesterday as the stock remained in the middle of its range for the last three weeks.
More than 7,800 DISH contracts traded against the daily average of 1,000. One print of 7,400 August 27 puts sold for the bid of $1.40 with no open interest because it is a new expiration, according to optionMONSTER's systems.
The options may have been traded against stock as a short-volatility position. Generally put sellers are looking for a stock to remain above the strike sold. If the stock is below that price, the trader faces assignment and the obligation to buy the shares. (See our Education section)
DISH fell 0.6 percent to close at $27.62. The satellite TV operator traded just below $34 as recently as late March.
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