Herbalife gapped higher on blowout results yesterday, and one
investor is apparently confident that it will hold the gains.
optionMONSTER's tracking systems detected the sale of about 3,000
September 50 puts on the herbal supplement maker for $1.15. Volume
was more than 12 times open interest in the strike.
HLF is down 1 percent to $54.38 in morning trading, but the stock
is up 18 percent in the last month and hit a new all-time high
yesterday after reporting its best quarter ever. Sales and earnings
crushed forecasts, while management raised guidance and boosted the
The company said it's benefiting from demand for weight-loss
products, plus better customer acceptance and a new club format
that's helping distrbutors increase sales.
Today's put seller is betting that HLF will remain above $50
through expiration and, if right, will keep the premium received.
Given that this price was the approximate location of resistance
earlier in the year, this trader may be expecting support at that
The transaction pushed total option volume in the stock to more
than 5 times the average level, according to our screening
(Chart courtesy of tradeMONSTER)
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