Capital One bears look for withdrawals
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's Depth Charge system shows heavy put buying at the June 55 strike, including two prints of 2,550 and 2,050 contracts three minutes apart for $1.58. Open interest in the strike was 1,890 at the beginning of the session, so these are new positions.
COF is up 1.84 percent to $56.50 today, facing resistance that goes back to September 2008. Shares of the bank-holding company fell after hitting a 52-week high of $57.49 on March 27 but have been recovering since finding support around the $53 level.
Our systems have not detected any stock trades related to the option activity today, though the puts could have been bought to protect a long position established earlier. The trade could also be a straight bearish bet that COF will fall roughly 5.5 percent back near the $53 support level by expiration in mid-June. (See our Education section)
Total volume in the name is already 5 times its full-day average, and puts outpace calls by more than 5.5 to 1 so far.