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Weyerhaeuser seen holding near highs

Chris McKhann (chris.mckhann@optionmonster.com)

Traders apparently believe that Weyerhaeuser will hold at current levels near five-year highs.

More than 8,100 December 27 puts traded across several exchanges today, sold for the bid price of $0.25, according to optionMONSTER's systems. Open interest was under 900 at the beginning of the session, so this is clearly new positioning.

The put selling is based on the thesis that WY will hold above $27 through the end of the year. The trader is also showing the willingness to buy shares if they are below the strike. (See our Education (See our Education section) section)

WY is off 0.44 percent at $27.38 in early afternoon trading. The lumber company bounced off support at $25 two weeks ago but is now pushing back toward its high of $28.46 on Oct. 18, its best price since 2007.

More than 9,400 WY options have traded overall so far today, compared to the average of 1,163 a day in the last month. Only 222 of that volume is in calls.

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