Nationstar Mortgage has been climbing in the last month, but one
investor is looking for a pause.
optionMONSTER's tracking systems detected the sale of 3,300 January
17.50 puts for $3.30 and 3,300 January 20 calls for $2.50. Volume
is more than 19 times open interest in both strikes.
The trader collected a credit of $5.80, which he or she will keep
as profit if NSM stays between $17.50 and $20 on expiration. Gains
will erode outside that range, turning to losses below $11.70 and
Known as a
, the position is designed to profit from the
passage of time
rather than a directional move. (See our
section for other
NSM is up 1.4 percent to $18.84 today. The mortgage-service company
went public at $14 a share on March 8, moved sideways for two
months, and started climbing in early May.
Overall option volume is 35 times greater than average so far
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