Options Brief: Lorillard Inc. (LO)

LO – Lorillard Inc. – The largest U.S. manufacturer of menthol cigarettes popped up on our ‘hot by options volume’ market scanner in the first half of the trading day after investors initiated near-term bearish strategies on the stock. Lorillard’s shares are currently down 0.35% at $74.38 as of 11:40 am (ET). Options players expecting further bearish movement in the price of LO’s shares picked up approximately 3,500 puts at the July $72.5 strike for an average premium of $0.23 per contract. Investors long the puts make money if shares fall another 2.8% to breach the average breakeven price at $72.27 by expiration on Friday.

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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