Tempur-Pedic has been falling despite strong results, and now
one investor is betting on the fundamentals.
optionMONSTER's tracking programs detected the sale of more than
2,200 October 47 puts for $3 to $3.20. Volume is more than 4 times
open interest in the strike.
TPX is down 0.78 percent to $48.31 in morning trading and is back
to levels last seen in March. The mattress maker's stock has been
exploding higher amid strong demand for its products as it
repeatedly beats estimates and raises guidance. Despite the recent
weakness in the S&P 500, it's still up more than 50 percent in
the last year.
when they like a stock but don't want to expend capital getting
long. The strategy lets them earn income from shares holding their
ground or rising even modestly. Today's trade also stands to
benefit from the accelerating pace of
as expiration approaches on Oct. 21. (See our
Overall option volume is 6 times greater than average so far
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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