Options Trading News

September 19, 2016  Mon 7:47 AM CT


Traders are looking for gains in KeyCorp by next spring.

optionMONSTER's tracking program detected the purchase of more than 4,200 March 14 calls for $0.30 on Friday. Open interest in the strike was a mere 77 contracts before the trades appeared, showing that these are new positions.

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)

KEY fell 0.89 percent to $12.26 on Friday but is up 7 percent in the last three months. The regional bank is expected to announce quarterly results in pre-market hours on Oct. 20.

Overall option volume was 6 times greater than average in the name on Friday. Calls outnumbered puts by a bullish 5-to-1 ratio.

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