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Big move seen in United Continental

Chris McKhann (chris.mckhann@optionmonster.com)

As United Continental pushes back toward last week's highs, one trader is apparently looking for shares to make a sharp move higher or lower in the next month.

optionMONSTER systems show that a trader bought 3,500 April 24 puts for the ask price of $0.12. This is clearly a new position, as open interest in the strike was only 92 contracts before the day's trading began.

A number of stock trades occurred right after the puts were bought, offsetting the delta of these options. So it appears that the trader is initiating a long-volatility play using those cheap out-of-the-money puts, betting that UAL will see a big break in either direction by expiration in mid-April. (See our Education section)

UAL is up 0.32 percent to $30.94 this morning. The airline carrier was down at $20 going into December but posted a five-year closing high of $31.35 last Friday.

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