Coca-Cola Enterprises draws put sale


One investor wants to kick back this summer with Coca-Cola Enterprises.

optionMONSTER's tracking systems detected the sale of 3,100 November 22 puts for $0.65 against open interest of just one single contract. The trade accounted for almost all the volume in the beverage company.

CCE fell 3.69 percent to $26.35 on Friday. It's down by more than 10 percent in the last month despite reporting strong results in late April.

Selling puts obligates the investor to buy shares for $22 if they're below that level on expiration. He or she may expect support around $23 or $24, which is where the stock bounced several times last year. If it does, the contracts will expire worthless and the trader will keep the $0.65 premium.

It also makes sense to sell puts because implied volatility has been pushing higher in the name, which means that option premiums are relatively high. (See our Education section)

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

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This article appears in: Investing , Options

Referenced Stocks: CCE

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