Lexmark Call Buyers Out In Force
by Option Review - July 14th, 2009 4:16 pm
Today’s tickers: LXK, EEM, MT, VIX, HUM, IPI, MIR & UNH
MT– The steel producer attracted the attention of bearish traders today amid a very slight dip in shares by less than 0.5% to $30.84. The near-term July 30 strike price saw the short sale of approximately 3,100 in-the-money calls for a premium of 1.30 per contract. Given the high degree of risk inherent in uncovered call selling, it would seem that the investors responsible for writing the calls expect shares of MT to fall below $30.00 by expiration. The full 1.30 premium received for the sale will be retained as long as the call options land out-of-the-money by this…