Live Nation Entertainment Inc (LYV) $9.74 -7.19%
Live Nation (LYV) loses 76 cents to $9.74 on disappointing earnings and one strategist sells 11,000 April 10 puts on the stock for 90 cents to buy 20,000 Mar 7 puts for 17.5 cents. The spread appears to roll a position opened 11 days ago when bears were circling LYV and 12,000 April 10 puts traded in smaller lots for 60 and 70 cents (see 2/13 color). Shares are down 9.5 percent since that time and, while the in-the-money Apr 10s are being closed for a profit, the strategist is opening a new larger position in deeper out-of-the-money Mar 7.5 puts. The activity seems to express the view that the weakness in LYV will continue through the March expiration, which is three weeks from today. Yet, implied volatility is down 9.5 percent to 50.5 now that the earnings event-risk has passed.
Situations like these, where substantially bearish activity surfaced a week before a big drop in the stock, is why it pays to follow the options order flow. WhatsTrading Premium offers objective market intelligence. Premium members have access to stories like LYV update throughout the day. The EXCLUSIVE content is designed to keep you informed about large block trades, unusual options activity, and significant changes in volatility. Premium members also have access to Flow Monitor, which is a tool that offers real-time volume, put-to-call ratios, open interest changes by ticker, sector, or market. At $79 per month, you won’t find a better source for objective options-related information. You will be billed month-to-month and can cancel at any time. Feel free to post any questions about WhatsTrading.com Premium.
Good Trading!
Category: All Stocks, Small Cap Stocks, Travel & Leisure
Free Newsletter
If you enjoyed this article, sign up to receive more just like it.
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.
