OptionsHouse

Options Trading News

April 30, 2013  Tue 3:16 AM CT

MBI: SEE CHART GET CHAIN FIND STRATEGIES
A complex call spread led yesterday's option activity in financial insurer MBIA.

optionMONSTER systems show that a trader bought 9,500 June 13 calls for $0.51 and sold the same number of August 17 calls for $0.43. The volume was more than the previous open interest at each strike, indicating new activity.

This is a bullish diagonal spread, using the sale of the longer-term, higher-strike calls to offset some of the cost of the June 13 long calls. (See our Education section)

MBI fell 4.37 percent yesterday to finish at $9.85, in the middle of its range for the last year. The stock hit its 52-week low below $7 in mid-November and its high above $13 at the start of March.

The company has tentatively scheduled its first-quarter earnings report for May 8. optionMONSTER systems show that 42,500 MBI options changed hands yesterday, nearly triple its daily average for the last month.
Share this article with your friends


Related Stories

MBI

Bears circling MBIA for second day

January 28, 2015

The loan guarantor has mostly reported strong earnings, but investors remain wary of potential exposure to bad mortgages.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »