Horsehead Holdings has lost half its market value this year, and one large trader is positioning for more downside by next spring.
optionMONSTER's Depth Charge system shows that 3,000 March 7.50 puts were bought in one print for the ask price of $1.10 yesterday. This is clearly a new position, as open interest in the strike was just 129 contracts before the trade occurred.
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position. (See our Education section)
ZINC rose 2.53 percent to $8.10 yesterday but is down 50 percent since the start of 2015. The manufacturer of zinc and nickel products will report earnings on Aug. 7.
Overall option volume in the name yesterday was triple its daily average for the last month. Total puts outnumbered calls by a bearish 22-to-1 ratio.
More From optionMONSTER