Why trader is selling puts in Fluor

optionMONSTER

A trader is looking for a floor in Fluor as the construction and engineering company trades near five-year highs.

optionMONSTER's tracking systems detected the sale of 2,000 January 72.50 puts in one print today for the bid price of $0.70. The volume was well above the strike's previous open interest of 419 contracts, indicating that a new position was established.

The put seller will keep the $0.70 credit as profit if FLR remains above $72.50 through expiration in mid-January. But if the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

FLR is up 0.53 percent to $78.22 this morning, slightly off recent peaks but continuing to hold multi-month support at its 30-day moving average. The infrastructure company hit $79.95 on Nov. 26, matching its high from Nov. 18, its highest price since the financial crisis of September 2008.

Total option volume in the name, which services industries ranging from energy to mining, has already exceeded its full-session average.


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