Puts Sold in Lorillard

Shares of Lorillard Inc. LO, a manufacturer of cigarettes in the United States, is selling off today by 1.17% to $79.72, but one trader is taking the opportunity to sell puts in the name. The January 2011 $60 put was sold on the bid 1,000 a short while ago; open interest on the strike is 16,674 contracts. This trade suggests that the stock will not break down from current levels toward $60. Lorillard Inc. is currently trading above both the 50-day and 200-day moving averages, which is a bullish sign.