Trades bet on pullback in LG Display
LG Display has been exploding higher since the summer, and now traders are looking for a pullback.
optionMONSTER's Depth Charge tracking program detected the purchase of more than 4,000 January 15 puts in the South Korean electronics company for $0.65 and $0.70. Volume was more than 190 times open interest at the strike.
Those puts represent an insurance policy against the stock dropping, so if it does fall they will increase in value. The buyer could own shares and be using the contracts as a hedge on a long position or could simply be wagering on a push to the downside. (See our Education section)
LPL is up 1.06 percent to $16.25 in afternoon trading. The stock is up more than 70 percent since the beginning of July, fueled by strong demand for displays used in Apple's iPad and iPhones.
Overall option volume is more than 200 times greater than average today, with puts accounting for almost 99 percent of the total.
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