KR – Kroger Co. – Optimistic options players appear to be building up short interest in September contract put options on the supermarket operator today with shares of the underlying stock increasing as much as 1.2% to an intraday high of $21.28. Investors looked to the September $20 strike to sell approximately 9,500 puts for an average premium of $0.30 apiece. Put sellers keep the full premium received on the transaction as long as Kroger’s shares exceed $20.00 through expiration day in September. Investors short the puts are apparently willing to have shares of the underlying stock put to them at an effective price of $19.70 each should the puts land in-the-money at expiration. Similar put selling behavior was observed back on July 22 when traders sold some 5,400 puts at the same strike price for an average premium of $0.70 per contract.
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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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