One investor apparently thinks that TripAdvisor is going
optionMONSTER's tracking systems detected the sale of about 5,500
contracts each in the April 30 puts for $1.25 and the April 35
calls for $0.75. Volume is more than 20 times open interest in both
The transaction resulted in a credit of $2, which the investor will
keep as profit if TRIP closes between $30 and $35 on expiration.
Gains will erode outside that range, turning to losses below $28
and above $37.
TRIP is down 2.17 percent to $31.53 in afternoon trading. The
travel-advice service was spun off from Expedia in December and ran
higher in January, but it gapped lower after a weak earnings report
last month and has been staggering ever since.
Given that chart pattern, some investors may expect the stock to
consolidate in a range over the intermediate term. Today's trade,
known as a short strangle, is designed to exploit such a move. (See
section for more on
strategies that make money from the
passage of time
rather than a directional move.)
Overall option volume is 11 times greater than average so far
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