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Options Trading News

December 5, 2012  Wed 2:14 AM CT

BBD: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Banco Bradesco are trying to break out of a 10-week range, and one trader is counting on the Brazilian lender to hold key support levels.

optionMONSTER's tracking systems detected the sale of 5,000 March 16 in a single print for $0.83. The volume was well above the strike's open interest of 1,798 at the start of the session, so this is a new position.

The put seller is looking for BBD to close above the $16 strike price at expiration in mid-March. If shares are below that level, the trader faces the obligation to buy the shares at an effective price of $15.17 when the credit from the put sale is included. (See our Education section)

BBD, which ended yesterday's session flat at $16.67, bounced at the $16 level last week and then broke above its 200-day moving average. Shares are now back near the top end of a range that has been in place since late September.

Yesterday's put sale made up the bulk of BBD's total option volume of 5,971 contracts, which was 2.5 times higher than its daily average. Bradesco also saw put selling about a month ago and drew bullish call activity last week.
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