WHR – Whirlpool Corp. – Shares of the world’s largest appliance maker fell 5.30% to $86.53 by 11:40 am (ET) inspiring bearish options traders to populate the August contract with pessimistic plays. Whirlpool’s shares declined in the first half of the trading session even though the appliance manufacturer raised its profit forecast and said it expects to report record earnings this year. WHR posted second-quarter net income of $2.92 a share, which blew right past average analyst expectations of $2.19 a share. Investors with little hope for a near-term rebound in Whirlpool’s share price sold approximately 2,700 calls at the August $95 strike to receive an average premium of $2.52 per contract. Bearish sentiment spread to the lower August $90 strike where options players sold 1,600 calls at an average premium of $4.54 apiece. Call sellers keep the premium pocketed on the transaction as long as WHR’s shares fail to rally above the strike prices described through August expiration.
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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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