On CNBC's Options Action, Mike Khouw spoke about unusually high bearish options activity in Altria Group Inc MO. Put options volume was 4 times higher than the average daily put options volume on a day when the stock received a downgrade from RBC Capital.
There was a large trade in the name on Thursday. A traders bought 2,500 contracts of the May 72.50/67.50 put spread for $0.80. The break even for the trade is at $71.70 or 3.13 percent lower from the closing price on Thursday. The trade can maximally make a profit of $4.20, if the stock drops to $67.50 or lower.
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