Investors are worried about a pullback in Weyerhauser as the
stock hovers near all-time highs.
optionMONSTER's Depth Charge monitoring program detected the
purchase of about 2,700 May 30 puts on Friday for $0.75. Volume was
almost 6 times the strike's open interest before the session began,
clearly showing that this is new positioning.
Those puts lock where traders can sell shares in the
forest-products company, no matter how far they may fall. That
creates a position that is inversely correlately to the stock
price, making it ideal for
hedging long positions
or speculating on a drop. (See our
section for more.)
WY fell 0.19 percent to $31.16 on Friday. The stock has roughly
doubled in the last 18 months but has been unable to make new highs
since mid-January. That could make some traders nervous that it's
losing momentum and expect a pullback. Earnings are scheduled for
Total option volume was twice the daily average in the session,
according to the Depth Charge. Puts outnumbered calls by a bearish
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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