Protection Sold in Aflac

Shares of Aflac Inc. AFL rose sharply yesterday on the news of a $1 trillion bailout for Europe. Aflac is said to hold $2 billion in bonds linked to Greece and Portugal. Today we are seeing a vote of confidence on the stock, at least in the near term. The May $50/47 put spread looks to have been sold at least 2,000 times. Open interest on both those strikes exceeds volume, indicating that a position was likely closed. Aflac Inc. has regained the 200-day moving average in yesterday and today’s trade. The stock looks like it will encounter congestion here though and probably move sideways for a few weeks.