Evidence of Guarded Optimism on Symantec as Strategist Enacts Delta Neutral Hedge

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.

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.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.