SYMC – Symantec Corporation – A sizeable delta neutral transaction on the provider of security, storage and systems management solutions indicates one options strategist is cautiously optimistic that Symantec’s shares are on the up-and-up. SYMC’s shares rallied 1.90% during the session to stand at $15.00 as of 3:40 pm (ET). The bullish trader appears to have established a delta neutral put and stock trade, buying 26,500 puts at the October $15 strike for an average premium of $0.98 apiece using a .46 delta, and tied to $14.96 stock. Time and sales on SYMC reveals one massive purchase of approximately 1.25 million shares of the underlying for a volume-weighted average price of $14.96 at roughly the same time the puts were transacted. This type of trading strategy suggests the investor, who is now long the stock, is expecting shares to rally ahead of October expiration. The put options serve as an insurance policy for the trader in case shares fail to perform as he expects they will in the next several months to expiration.
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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