Market News

November 23, 2016  Wed 7:16 AM CT

A large investor is upping the ante in an upside trade on Synchrony Financial.

OptionMonster's monitoring system detected the sale of 23,737 December 32 calls for $2.32 and the purchase of 35,592 January 34 calls for $1.67 yesterday. Volume was below open intereset in the December contracts, indicating that a bullish position was rolled forward by a month to a higher strike and increased in size.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

SYF rose 1.04 percent to $33.97 yesterday and is up 23 percent in the last three months. The financial services firm is expected to release quarterly results in pre-market hours on Jan. 20.

Overall option volume was 13 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 6-to-1 ratio.

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