CTAS – Cintas Corp. – The provider of specialized support services for businesses throughout North America appeared on our ‘hot by options volume’ market scanner in the first half of the trading session after one investor initiated a bullish stance on the stock. Cintas’ shares are currently trading slightly lower by 0.08% to $24.99 as of 12:30 pm (ET). The optimistic options player sold short at least 12,000 puts at the July $22.5 strike to pocket an average premium of $0.20 per contract. The full premium is safe in the investor’s wallet as long as Cintas’ share price remains greater than $22.50 through July expiration day. The trader is apparently willing to have shares of the underlying stock put to him at an effective price of $22.30 each should the puts land in-the-money at expiration. But, Cintas’ shares would need to fall more than 10.75% from the current price of $24.99 before the put seller starts to incur losses beneath a share price of $22.30.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.
Visit: Interactive Brokers