Puts Active on Realty Income (O)

Options Unusual Activity

Posted September 7th, 2012 by The Options Insider in Unusual Activity

Shares of Realty Income Corp. (O) are trading solidly higher on the session. Currently, shares are up 2.13%, at $43.11. The REIT has been the epitome of consistent over the past year, with shares ticking higher and higher since bottoming in early October 2011.

All that may be due the change, however. Over the past few weeks, Realty Income has seen immense selling pressure, especially on August 31st and September 6th, when shares volumes hit new highs. The options market is now following suit.

Put volume is running at 17x normal volume today, with heavy action coming on the December $40 strike. Early in the session, 1,000 contracts were purchased, on the offer, for $1.00. 19 minutes later, another block of 697 puts was purchased for $0.95, also on the offer.

Overall historical and implied volatility is registering 13% and 23%, respectively. At $1.00 and $0.95, the Dec $40 puts traded at 22.5% and 23% vol.

Realty Income Corporation is an equity real estate investment trust. The company is engaged in acquiring and owning freestanding retail and other properties that generate rental revenue under long-term lease agreements (primarily 10 to 20 years).