Put spreads in Expeditors International as shares drop nearly 5%
Put spreads in Expeditors International as shares drop nearly 5%. The stock off $3.61 to $75.10 after earnings and 1.5K May 70 - 75 put spreads sold at $1.20, then another at $1.35. More than 4K trade and the vertical probably closes some positions opened 4/3 when, with shares $79, 12.6K May 70 - 75 put spreads bought for 85c, outright. In short, the investor is closing some of the spread to monetize profits after the one-month 5% drop in shares, but since the bulk of the position is being left open, and the two contracts are the largest open interest in the name, there seems to be continuing concerns about the short-term outlook for shares. May contracts expire at the end of next week. 70 strike puts are 7.5% below spot.