News Corp. has been seemingly unstoppable, and one investor is
using puts to manage the trade.
optionMONSTER's monitoring programs detected the sale of more than
4,200 October 25 puts for $0.60. Volume was more than 380 times
open interest at the strike, indicating that a new position was
The investor is now obligated to buy shares of the media company
for $25 if they're below that level on expiration. But including
the credit earned, the purchase price would be $24.40.
NWSA rose 1.65 percent to $24.88 yesterday. The stock is up 23
percent in the last three months, following other media names
higher. It's also benefited from a plan to separate its publishing
and video businesses.
lets the investor program an entry below current price without
having to wait for a pullback. If the stock keeps running and
closes above $30, the puts will expire worthless and the seller
will keep the $0.60 credit. (See our
Overall option volume was triple the daily average in the
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