LYV – Live Nation Entertainment, Inc. – The producer of live music concerts jumped onto our ‘hot by options volume’ market scanner late in the trading session after a large chunk of put options changed hands in the August contract. Live Nation’s shares are currently down 5.40% at $10.54 as of 3:50 pm (ET), yet the put player populating our screens appears to be selling the contracts in order to establish a bullish stance on the stock. It looks like one contrarian options strategist sold 13,000 puts at the August $10 strike to pocket an average premium of $0.60 per contract. The investor keeps the full premium received on the sale of the puts as long as Live Nation’s shares exceed $10.00 through expiration day in August. The parameters of the transaction indicate the put seller is happy to have shares of the underlying stock put to him at an effective price of $12.40 each in the event that the puts land in-the-money at expiration. Options implied volatility on Live Nation shot up 14% to stand at 61.36% with less than 10 minutes remaining before the final bell.
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.
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