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Lorillard Inc. (LO) Options Active Ahead Of Earnings

Verisign, Inc. (NASDAQ:VRSN) – Options on Internet infrastructure services provider, Verisign, Inc. (NASDAQ:VRSN), are active today ahead of the company’s second-quarter earnings report on Thursday. Shares in the name are down 0.50% on the session at $45.52 as of 12:10 p.m. ET. Front month calls are the most traded options on Verisign, Inc. (NASDAQ:VRSN) as of midday in New York, with roughly 5,100 Aug $46 strike calls in play versus open interest of 180 contracts. It looks like most of the $46 call options may have been sold for a premium of $1.15 apiece. Maximum gains of $1.15 per contract are available on the trade as long as shares in Verisign, Inc. (NASDAQ:VRSN) settle below $46.00 at expiration next month. The calls may have been sold outright or written against a long stock position. If sold outright, the trade starts losing money in the event that Verisign, Inc. (NASDAQ:VRSN) shares rally 3.6% over the current price of $45.52 to exceed the upper breakeven price of $47.15.

Caitlin Duffy
Equity Options Analyst

The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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