A trader is betting that Campbell Soup will hold current levels in the next several weeks.
optionMONSTER's tracking systems detected the sale of 2,500 February 35 puts for $0.65 in 18 seconds yesterday. Open interest in the strike was just 179 contracts before the session began, so this is clearly a new position.
These short puts are looking for CPB to close above $35 at expiration in mid-February. If the stock is below this strike price at that time, the trader will face the obligation to buy the stock for an effective price of $34.35 when the credit from the put sale is factored in. (See our Education section)
CPB rose 0.63 percent yesterday to close at $35.21. Shares of the food company have been sliding since hitting $36 as the new year began, but they have held support at the $34.50 level since mid-August.
Yesterday's put trading pushed total option volume in the name to 3,148 contracts, more than 5 times its daily average of 609 for the last month.
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