Bears log on to Liberty Global


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Liberty Global is accelerating to the downside, and the bears are wishing it an unhappy New Year.

optionMONSTER's Depth Charge tracking system detected the purchase of 5,000 January 30 puts for $2 and the sale of an equal number of January 22.50 puts for $0.55. Volume was more than 24 times open interest in both strikes.

Known as a bearish put spread, the trade cost $1.45 and stands to earn a maximum profit of 417 percent if the global broadband stock closes at or below $22.50 on expiration.

LBTYA fell 1.80 percent to $35.98 yesterday and has lost 18 percent of its value in the last month. It slammed into a double-top at an all-time highly slightly above $47 in early July, rolled over, made a lower low and then a lower high this month.

The company operates in countries including Germany, Poland, Chile and Australia. It has a hefty debt load and has typically traded independently of its operating performance. The recent downside has occurred despite a strong earnings report on Aug. 3.

Overall options volume was 9 times greater than average yesterday, with puts outnumbering calls by 14 to 1, according to Depth Charge.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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