Options Brief: Live Nation Entertainment (LYV)

LYV – Live Nation Entertainment, Inc. – Shares of the producer of live music concerts surged more than 4.65% to $12.36 late in the trading day. The rally in the price of the underlying stock inspired bullish options trading strategists to take action. One optimistic investor sold short 12,900 puts at the July $10 strike to pocket an average premium of $0.125 per contract. The trader keeps the full $0.125 premium per contract as long as Live Nation’s shares exceed $10.00 through July expiration. The put seller is obliged to have shares of the underlying stock put to him at an effective price of $9.875 if the puts land in-the-money by expiration day next month.