Credit: Shutterstock photoOld Dominion Freight Line is attempting to bottom out, and one investor is trying to save face in a money-losing trade.
optionMONSTER's tracking programs detected the sale of 1,656 September 40 puts for $11.84 against no existing open interest. An equal number of August 40 puts were bought at the same time for $11.77 but volume was below open interest, which indicates that a short position was rolled from one contract to the other.
The investor had apparently sold August puts on the North Carolina trucking company in hope it would hold its ground, but then it fell along with the rest of the market. By extending the trade to September, he or she avoided being forced to buy shares at $40 today. The trader also earned $0.07 of additional income.
ODFL is up 0.66 percent to $28.80 in morning trading. The stock is down 23 percent in the last month, despite last earnings report on July 28 beating forecasts.
Overall option volume is 25 times greater than average so far today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
