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Lower volatility in Liberty Global?

Chris McKhann (chris.mckhann@optionmonster.com)

A large position is looking for range-bound trading in Liberty Global as shares of the broadband-communications company rebound today.

optionMONSTER systems show that a trader sold 3,000 April 42.50 puts for $0.75. The previous open interest in that strike was just 18 contracts, so this is a new position.

Less than a minute later, a block of 105,000 LBTYA shares was sold for $43.50. The delta of the options indicates that this is an overall market-neutral play that is counting range-bound trading and/or for the stock's volatility to be lower than that implied by the premium of the puts. (See our Education section)

LBTYA is up 1.06 percent to $43.86 in midday trading. The stock fell to $42.55 this morning, its lowest price since the start of 2012.


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