Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 17, 2013  Thu 2:45 AM CT

ETFC: SEE CHART GET CHAIN FIND STRATEGIES
A combination strategy appears to be looking for shares of E*Trade Financial to remain range-bound in the next month.

optionMONSTER systems show that 10,000 each of the February 10 calls and puts traded yesterday for $0.37 and $0.51 respectively. The volume at each strike was more than twice the previous open interest, indicating new activity.

Both sides of the combination trade were sold for their respective bid prices, making for a short straddle position that is looking for lower volatility in the online brokerage's shares. The trade would take in a maximum of $0.88 if the stock closes right at $10 at expiration on Feb. 15. (See our Education section)

ETFC rose 0.92 percent to $9.86 yesterday, just about matching its close from Sept. 14, which was the highest since early May. Shares were below $8 in mid-November.  

Total option volume in the name was 38,833 yesterday, 10 times its daily average of 3,840 in the last month. E*Trade saw bullish call buying last Friday.

(Editor's note: E*Trade is a competitor of optionMONSTER's sister company tradeMONSTER.)
Share this article with your friends


Related Stories

ETFC

E*Trade attracts huge bullish bet

April 7, 2014

A large call spread is looking for the online brokerage to rebound from a sharp drop at the end of last week, which has taken it to its lowest level in two months.

Premium Services

Education & Strategy

Using emerging markets as a hedge

I spend lots of time and energy pondering ways to hedge the market. Right now my instrument of choice is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER