Credit: Shutterstock photoTwenty-First Century Fox has gotten slammed, and investors think it will hold its ground.
optionMONSTER's tracking programs detected the sale of 19,700 January 24 puts for $0.75. Volume was more than 30 times open interest at the strike, which indicates a new short-put position was initiated.
Selling puts earns income while creating an obligation to buy shares if they fall below a certain level. Traders use it when they like a stock but don't want to get long right away. (See our Education section)
FOXA is up 0.49 percent to $26.44 in afternoon trading but has lost 31 percent of its value so far this year. It has been sliding along with other media stocks on worries about changes in viewing habits from the cable to the Internet, but shares are now trying to bounce around the same $25 level where it peaked in October 2012. That could make some chart watchers think it's at support.
The next earnings report is estimated for Nov. 3. While the company has managed to beat expectations on the bottom line most quarters, revenue has lagged recently.
Total option volume is 9 times greater than average so far in the session.
Rival media company Viacom doubled the money of our premium subscribers earlier this month as it rallied from long-term lows. There was more buying on Friday as well.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
