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Options Intelligence Report: Tenaris S.A. (TS) & Micron Technology, Inc. (MU)
Posted on 3/25/2010 in Unusual Activity by Andrew Wilkinson
TS – Tenaris S.A.
The global steel pipe manufacturer attracted bearish options traders despite the 0.60% rally in its underlying share price to $43.64 today. Perhaps pessimism stems from the downgrade initiated at UBS where analysts cut their rating on Tenaris from ‘buy’ to ‘neutral’ yesterday. One bearish investor established a debit put spread on the world’s largest producer of seamless pipes used to extract oil and gas.
The trader purchased 4,500 puts at the June $40 strike for a premium of $1.38 each, spread against the sale of 4,500 puts at the lower June $35 strike for $0.33 apiece. Net premium paid by the pessimistic player amounts to $1.05 per contract. The trade yields the investor maximum potential profits of $3.95 per contract if shares of the underlying stock sink 19.80% from the current day’s price to $35.00 by expiration day in June.
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http://www.theoptionsinsider.com/unusua ... z0nCHfivXV
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