Stocks quoted in this article:
Ericsson Telephone (ERICY - 19-1/16) shares are fractionally higher today and have challenged a site of potential technical resistance in the form of their 20-day moving average residing at about 19-1/4. From a longer-term technical perspective, the security has spent the last four months locked in a trading range between 16-1/2 and 23-1/2. Today, it appears that an institutional player is rolling out a large put position on the ERICY. The August 20 put has already seen over 6,000 contracts change hands in a number of large block trades at or near the bid price. Most of these trades are likely liquidations. Over 24,000 contracts of open interest resided on this option at the close of Friday's trading. A similar number of contracts have also traded today on the October 20 put at or near the ask price. Going into today, open interest on this option was a mere 3,600 contracts. Most of the August 20 puts were sold for 1, while the October 20 puts were bought for 2-5/16, meaning that the trader paid 1-5/16 per contract to roll out the position.