PPL – PPL Corporation – Options traders fired off bullish signals on PPL Corp. today with shares of the energy and utility holding company rallying 2.10% to $24.75 by 12:12 pm (ET). PPL was raised to ‘buy’ from ‘hold’ and given a 12-month target share price of $29.00 at Soleil Securities this morning. Investors expecting shares to continue to appreciate through July expiration ditched approximately 4,000 in-the-money puts at the July $25 strike to receive an average premium of $0.90 per contract. If traders are selling short the put contracts they keep the full premium pocketed on the transaction as long as PPL’s shares exceed $25.00 by expiration day. Investors could, however, be taking profits by selling-to-close previously established long put positions given previously existing open interest of 9,063 put contracts at the July $25 strike. The overall reading of options implied volatility on PPL Corp. shrank 15.2% to 24.43% by 12:18 pm (ET).
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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.
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