Protection Purchased on AOL Inc. (AOL)
Shares of AOL Inc. (AOL) are trading lower on the session by 1.61%, at $36.00. The stock has been on a tear over the past year, consistently consolidating and breaking out to the upside. AOL is up over 135% year to date.
One option trader is nabbing up puts this morning, though. Moments ago, the November $34.00 put was purchased 4,500 times, on the offer, for $0.80. With open interest of only 52 contracts, this is clearly fresh positioning on the name.
The action on the strike has pushed overall put volume to 2x normal average, with 98% on all contracts traded being purchases on the offer.
Implied volatility is popping as well, up 5.3% on the session, to 32.10%. Near-term historical volatility shows a large divergence to IV, at only 17.62%. This hints that the options market is expecting an outsized move in the name soon.
AOL Inc. is a global Web services company with a range of brands and offerings and a global audience. The company's business spans online content, products and services, which it offers to consumers, publishers and advertisers.
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