VimpelCom has been grinding against its current support level for the last year, and one investor apparently believes that it will hold its ground or stage a rally.
optionMONSTER's tracking systems detected the sale of 1,800 December 15 puts for $1.68. An equal number of June 15 puts were bought at the same time for $0.98, but volume was below open interest, which suggests an existing short position was rolled from one contract to the other.
The trade resulted in a credit of $0.70. It was an unusual transaction because VIP is trading at $14, down 0.39 percent this morning, meaning those puts are in-the-money.
The trader probably sold the June contracts several months ago betting that the emerging-market telecom stock would rally above $15. Given that is has failed to do so, they now face the prospect of being assigned shares on expiration later this month. Rolling the position forward eliminates that danger and gives them more time for VIP to rally.
The transaction pushed overall option volume in the name to 22 times greater than average.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.