A large put sale dominates the option trade in the New York Times and sees a floor in the stock price.
Exactly 4,000 NYT options have traded so far this morning, compared to a daily average of 176 over the last month. All of the volume is in the January 9 puts.
optionMONSTER systems show that a trader sold those puts for the bid price of $0.85. There was no open interest at that strike when the session began, so this is a new position.
The put selling is a bet that NYT will remain above $9 over the rest of this year. To the downside, the trader faces the potential obligation of having to buy shares if they are below the $9 strike price. (See our Education section)
NYT is down fractionally at $9.77 but off the lows of the morning. Shares of the media company traded at $10.35 on Tuesday, their highest level since gapping down in late October.
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