Quest Diagnostics (DGX) had a large straddle sell at 3:15pm Tuesday, as 2,000 March 55 straddles were sold for $3.25, believing shares are trapped between $51.75 and $58.25 through March. That puts shares between a gap as resistance and a double bottom support level, so a fairly high probability trade, although the value is not all that great as IV is already depressed at 22%, near 52 week lows. At a fair valuation of 12X earnings and 13.5X cash flow, and no near term catalysts, the trade might make some sense.

2 users commented on " Quest Diagnostics (DGX) $55.44 -.43% "
Follow-up comment rss or Leave a TrackbackThanks Joe!
There was a block of 30K shares traded at $55.65 about the same time. Looks like maybe long stock, short the straddle.
Looks like sellers of Feb 55 straddles now.