Closing bullishness in Annaly (NLY)


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Shares of Annaly Capital Management Inc. (NYSE: NLY ) are trading up near their 52-week high despite a worse-than-expected earnings announcement, and one investor appears to have closed a moderately bullish put position. The October 15-strike and 16-strike puts were active during morning trading without any notable news on the company.

By 10 a.m. EDT, 7,500 October 15-16 put spreads had hit the tape. Current open interest in the lower-strike puts is 24,000 while the higher-strike puts are home to current open interest of 17,900 contracts. The 15-strike puts traded for 18 cents per contract, which was closer to the bid price at the time of the trade. The 16-strike puts crossed the tape for 38 cents per contract, which was closer to the ask price when the volume traded.

This options action suggests the investor paid a net debit of 20 cents per spread to close out a bull put spread position. Depending on the initial premium of the spread, the investor could have taken a slight loss or gain by exiting the position. Judging from the stock price, the investor most likely closed this put position to take profits and might not be expecting the stock to climb much higher during the near term.

NLY shares were trading around $17.50 as of 10:25 a.m. EDT. The stock is trading 23% higher than its 52-week low of $14.05. On July 28, NLY announced earnings of 59 cents a share and missed estimates by three cents.

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

This article appears in: Investing , Options

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Karla Yeh

Karla Yeh

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