Market News

October 18, 2016  Tue 5:45 AM CT

Capital One Financial is drawing downside option activity ahead of quarterly results a week from today.

optionMONSTER's market scanner shows that 1,540 October 70.50 puts were sold for $0.29 while 1,540 Weekly 68 puts expiring on Oct. 28 were purchased for $0.56 yesterday. Volume was below open interest in the nearer-term contracts, indicating that a bearish position was rolled foreward by a week to a lower strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

COF rose 0.35 percent to $71.78 yesterday and is up 5 percent in the last three months.The credit-card and banking company is scheduled to release quarterly numbers after the close on Oct. 25.

Overall option volume in the name was twice its daily average yesterday. Puts outnumbered calls by a bearish 4-to-1 ratio.

News Archives

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »