Lamar Advertising is back to potential resistance, and the bears
are stepping in.
optionMONSTER's Depth Charge monitoring system detected the
purchase of about 10,000 July 45 puts for $1.50 and the sale of an
equal number of July 38 puts for $0.30. Volume was more than 70
times open interest at each strike, clearly showing that this is
The trade cost $1.20 and will earn a maximum profit of 483 percent
if LAMR closes at or below $38 on expiration. It could be the work
of an investor looking to
hedge a long position
in the billboard company or a bear placing a speculative downside
bet. (See our
section for more on the strategy, which is known as a
bearish put spread
LAMR fell 1.26 percent to $47.99 yesterday but is up almost 80
percent in the last year. It's now back around the same level that
was support for much of 2007 before the stock began a violent
decline into single digits. That could be leading some chart
watchers to expect resistance to form.
The company also reported quarterly results that were in line with
estimates and is awaiting a ruling from the government on becoming
a real-estate investment trust.
Total option volume was 25 times greater than average in the
session, according to the Depth Charge, with puts dominating the