OpenTable (OPEN) adds a nickel to $46.75 and a Mar 42.5 – 45 put spread was initiated on the stock at 60 cents, 2088X at 12:02 on ISE. Data from the exchange indicate the spread was sold a total of 3071X, to open. A minute later, a Mar 50 – 52.5 call spread trades on the stock at 45 cents, 1671X on ISE. Data suggest the spread was also sold to open, 2859X. Taken together, the spreads might be legs of one four-way, which would have a payoff similar to an iron condor — i.e. roughly $1.05 if the stock settles between $45 and $50 at the March expiration, in 23 days. The stock has been trying to rebound from a four-day 13.9 percent losing skid suffered after earnings were reported on 2/7. The spread trading seems to express the view that the stock is likely to hold around these levels in the weeks ahead.
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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.