CIT Group trade sees limited upside
Chris McKhann | email@example.com
CIT is down more than 1.25 percent to $39.40 after trading just shy of $42 at the beginning of the week. The bank-holding company had been trading higher from the 2012 lows below $33 in early June.
A trader sold 4,900 October 40 calls for $0.83, according to optionMONSTER's tracking systems. Open interest in the strike was 3,141 contracts at the start of the day, so this is a new position.
The call selling is a bet that CIT won't see much upside in the next few weeks. They were likely sold against long stock as a covered call, given how they are to being at the money. That strategy would be bullish up to the strike, but not beyond. (See our Education section)