One investor sees resistance on Unilever's chart.
The Dutch consumer-products giant peaked around $35 late last month, and today one investor is selling calls at that level. A block of 8,283 May 35 calls were sold for $1.80 open interest of just 1,029 contracts, according to optionMONSTER's tracking programs.
The move reflects a belief that UN won't advance significantly above that recent high, the stock's best level since early 2008. Given the income received, the trader has essentially agreed to sell shares for $36.80.
UN, which is up 3.12 percent to $34.08 today, has been churning in a range since the spring. Today's call seller probably owns shares in the stock and is using the options as part of a covered call strategy.
Overall option volume is 34 times greater than average so far today.
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