Options Brief: Live Nation Entertainment (LYV)

LYV – Live Nation Entertainment, Inc. – Shares of the producer of live music concerts surged more than 4.65% to $12.36 late in the trading day. The rally in the price of the underlying stock inspired bullish options trading strategists to take action. One optimistic investor sold short 12,900 puts at the July $10 strike to pocket an average premium of $0.125 per contract. The trader keeps the full $0.125 premium per contract as long as Live Nation’s shares exceed $10.00 through July expiration. The put seller is obliged to have shares of the underlying stock put to him at an effective price of $9.875 if the puts land in-the-money by expiration day next month.

About Andrew Wilkinson 1023 Articles

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.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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