Building-materials company USG is pulling off its highs, but put selling sees little to no downside ahead.
USG is down 1.97 percent to $19.37. The stock was at an intraday high of $20.98 last week with the closing highs coming earlier in the month. Shares have run up from a 52-week low of $5.75 set in October.
optionMONSTER's systems show that a trader sold 5,300 August 19 puts for the bid price of $1 in a single print. Open interest in the strike was 470 contracts at the beginning of the day, so this is a new position.
Put selling has been the play of the day for many institutional trades in the option market. These traders are looking for stocks to hold above their respective strike prices, which would allow them to collect the so-called volatility premium . They are also willing to buy shares if they are below those levels. (See our Education section)
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