How volatility trader is playing 3M

By
A A A

A large trader is looking for a big move in 3M.

optionMONSTER's trade scanners detected the purchase of 8,000 December 130 puts for $0.63 and 8,000 December 135 calls for $1.19. Volume was more than triple the previous open interest at each strike, indicating that new positions were implemented.

The investor paid $1.82 to initiate the trade, known as a strangle . He or she stands to profit from increased volatility , which would drive up the value of the industrial conglomerate's options. Alternatively, they will make money if the shares close below $128.18 or above $136.82 on expiration. (See our Education section)

MMM is up 0.2 percent to $133.77 today. The shares are up 44 percent so far this year, making them the fourth-best performing member of the Dow Jones Industrial Average. It's been climbing amid strong earnings and as an improving economy draws investors to industrial stocks.

Total option volume is slightly above average so far in the session, with that strangle dominating activity.



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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: MMM

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

71%

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com