KeyCorp seen trapped in tight range
David Russell | email@example.com
optionMONSTER's tracking systems detected the sale of 30,000 September 6 puts on the slow-moving bank stock for $0.18. An equal number of September 8 calls was also sold for $0.18, so the trader collected a credit of $0.36. Volume was more than 25 times open interest in each strike.
If the regional lender's shares remain between $6 and $8, the investor will get to keep that income as the position expires worthless. The trader faces potential losses outside that range. (See our Education section for more on strangles and straddles.)
KEY is up 0.7 percent to $7.22 in afternoon trading. Overall option volume is 14 times greater than average so far in the session.