Waste Management is consolidating after a rally, and one trader is positioning for the stock to hold its ground.

optionMONSTER’s tracking systems detected the sale of 3,825 April 32 puts for $ 0.30. Volume was more than twice open interest in the strike.

The put seller is now obligated to buy shares in the garbage-disposal company for $ 32 if they fall to that level. If, however, they remain above it for the next two months, he or she will keep the credit and the contracts will expire worthless. (See our Education section for more on market-neutral strategies that make money from the passage of time rather than a directional move.)

WM fell 0.73 percent to $ 35.38 yesterday but is up 17 percent in the last three months. It’s been climbing along with the rest of the market, having reported better-than-expected earnings and revenue on Feb. 16.

The stock has been attempting to hold its ground around the same level where it peaked in late October and consolidated above $ 32 two months later. Those patterns could make some chart watchers think that it has support above the strike price and give them comfort writing the puts at that level.

Overall option volume in the name was triple the daily average in the session.

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