What's behind Monsanto put sale

optionMONSTER

An unusual put trade tops today's option activity in Monsanto.

optionMONSTER systems detected the purchase of 6,640 January 85 puts for the ask price of $0.83 against open interest of 9690 and the sale of 6,000 January 90 puts for the bid price of $1.29. The latter strike's volume was above open interest of 1,954, so it is a new position.

This could be a new credit spread but, given the size differences and open interests, it appears to be a roll of a short-put position . The trader is then moving short puts to a higher strike, reflecting the rise in the stock price. (See our Education section)

MON is down 0.55 percent to $105.12 this morning. The agribusiness giant has run up from support at $94 in the last month.

Today's trade pushed total option volume in MON to nearly 14,000 contracts, compared to a daily average of just 3,500. 

More From optionMONSTER

View Comments