Garmin has been on tear, and one investor has been using puts to
navigate the trade.
optionMONSTER's tracking systems detected the
of 2,900 April 43 puts for $0.51. An equal number of April 35 puts
were sold at the same time for $0.06, but volume was below open
interest in the strike.
That suggests the investor had previously sold the 35s to earn a
credit. Then the shares rallied, and he or she is now rolling the
position to the higher strike to bring in an additional $0.45 of
GRMN fell 1.17 percent to $48.29 yesterday. The maker of
global-positioning systems is up 50 percent in the last six months
as it rallies against short interest and finds new growth in
fitness devices. It ripped higher earlier in the week after results
crushed estimates and management provided strong guidance.
The stock is still significantly above the $43 level where the
investor would be forced to buy shares on a pullback. He or she
probably expects GRMN to hold its ground, rendering the puts
by Chris McKhann)
Overall options volume was triple the daily average in the
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