Lorillard Inc (LO) $78.18 +0.26%
Lorillard (LOW) adds 25 cents to $78.23, the day after the FDA said menthol doesn’t add to smoker risk. Shares rallied on the news yesterday and are building on the gains today. In options action, morning trades include a Mar 75 – April 65 put spread, at $1.68, 5000X on ISE. Sentiment data indicate that the 5000-contract block of Mar 75 puts was bought-to-open (suggesting 10000 April 65 puts were sold). So, this might be a bet that shares will fall below $75 before the March expiration, but not below $65 by the April expiration.
Category: All Stocks, Large Cap Stocks, Personal & Household Goods
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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.
