Vulcan Materials (VMC, news, chart, volatility) puts are active. 7,000 have traded, compared to just two call options. Shares are up 34 cents to $50.85 and the top two options trades printed at 10:20 ET on the PHLX. At that time, 2,900 December 45 puts traded on the offer for $3.00 per contract and 2,900 December 35 puts for 70 cents. With very little existing open interest (94 and 74 contracts), it looks like the initiation of a bearish spread for $2.30. If so, the payoff potential is $7.70 if shares of the Birmingham, AL building materials company fall to $35 or less by December options expiration (31 days).
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.