Puts Sold on Lorillard (LO)

Shares of Lorillard, Inc. LO are lower on the session by 0.46%, currently trading at $80.82. The stock has been moving largely higher over the past four months, off of a recent low near $71.00. Options traders are selling puts on LO today, perhaps drawing a line in the sand for the stock. A short while ago the December $65.00 put was sold 2,800 times, on the bid, for $0.55; open interest on the strike is 6,682 contracts. Put volume is running at 7.66xthe daily average, 1% on the offer. This seems like a long stock proxy, as the stock has not seen $65.00 in years. Lorillard, Inc. is a manufacturer of cigarettes in the United States. Newport is the company's menthol flavored premium cigarette brand. As of December 31, 2009, the Newport brand accounted for approximately 91.5% of the company's sales revenue. In addition to the Newport brand, Lorillard's product line has five additional brand families marketed under the Kent, True, Maverick, Old Gold and Max brand names. The brands include 41 different product offerings, which vary in price, taste, flavor, length and packaging. The Company manufactures all the products at the Greensboro, North Carolina facility. The subsidiary of the company is Lorillard Tobacco Company. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.