OptionsHouse

Options Trading News

January 11, 2013  Fri 3:47 AM CT

CS: SEE CHART GET CHAIN FIND STRATEGIES
Credit Suisse attracted upside option activity yesterday after announcing the sale of its exchange-traded fund business.

optionMONSTER's Heat Seeker system shows that 1,992 January 27.97 calls were purchased for $0.25 at the same second. Open interest in the strike was just 78 contracts before trading began, so this is clearly fresh buying.
 
CS rose 2.99 percent yesterday to close at $27.59. The stock broke through multi-month resistance at the $24 in December and has been rising sharply since the start of the new year.

The Zurich-based banking giant rose right out of the gate yesterday morning on news that it was selling its ETFs, estimated to be worth more than $17 billion, to financial-management firm BlackRock. Credit Suisse also received an upgrade by Nomura to "buy" from "neutral" yesterday.

Yesterday's long calls, which lock in the price where the trader can buy the stock, are betting that CS will gain roughly 2 percent by expiration a week from today. If the shares are below the $27.97 strike price at that time, however, these options will expire worthless. (See our Education section)

The trade made up two-thirds of Credit Suisse's total option volume yesterday, which was nearly quadruple its daily average in the last month. Overall calls outnumbered puts by more than 8 to 1, a reflection of the session's bullish sentiment.
Share this article with your friends


Related Stories

CS

Short-term put buying hits Credit Suisse

June 13, 2016

The Zurich-based bank is down 13 percent in the last three months, and traders are positioning for more potential declines by the end of this week.

CS

Credit Suisse calls banking on gains

June 2, 2016

Traders are betting on a rally in the Zurich-based bank, which is down 10 percent in the last month despite reporting bullish quarterly results.

OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »