Those contracts lock in the price investors must pay for New York Times Co. stock and will generate some nice leverage in the event of a rally. But these options will lose value if the stock doesn’t move.
New York Times shares rose 0.1 percent yesterday to close at $9.60. Early in the session, the company announced the planned sale of its remaining interest in online job-search site Indeed.com, which is being acquired by Japanese executive-search firm Recruit for an undisclosed amount.
More than 2,400 calls traded against just 241 puts in the name, a reflection of the session’s bullish sentiment.
—By CNBC Contributor Pete Najarian
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Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian has no positions in NYT.