Line in the Sand Drawn in AOL
Symbols: AOL
One trader is drawing a line in the sand for web services company, AOL (NYSE: AOL). This morning the March $22 puts were sold 2,700 times for $0.50; this action was well above open interest on the strike. The Feb $23 strike put is also seeing volume of 1,400 contracts, in line with open interest.
AOL has been trading sideways since its spinoff in November of last year, ranging between $26 and $23. The put seller is betting that the stock will maintain this range and is willing to get long shares in the name at a cost basis of $21.50 should the stock fall through the $22 strike.
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