A large trader apparently believes that further declines will be limited in Stericycle.
OptionMonster's monitoring systems detected the sale of 3,966 January 70 puts in one print for $1.60 yesterday. This is clearly a new position, as open interest in the strike was only 366 contracts before the trade occurred.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
SRCL fell 1.21 percent to $71.61 yesterday and is down 14 percent in the last three months. The medical waste-disposal service is expected to announce quarterly results after the close on Feb. 2.
Overall option volume in the name was 10 times greater than average.
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