Options Trading News

September 22, 2016  Thu 8:22 AM CT


A large position is counting on the uptrend to continue in the SPDR Bank Fund.

optionMONSTER's tracking program detected the purchase of 10,000 October 33 calls in one print for $1 yesterday. This is clearly a new position, as open interest in the strike was a mere 22 contracts before the trade occurred.

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)

KBE rose 0.5 percent to $41.91 yesterday and is up 6 percent in the last three months. Total calls outnumbered puts by a bullish 20-to-1 ratio.

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