OptionsHouse

Options Trading News

April 10, 2013  Wed 11:09 AM CT

MBI: SEE CHART GET CHAIN FIND STRATEGIES
A trader is opening a highly bullish position in MBIA as shares of the financial-insurance company rebound today.

optionMONSTER Heat Seeker system shows that a trader bought 10,000 August 13 calls for the ask price of $1.17 and sold the same number of the August 16 calls for their bid price of $0.54. The volume at each strike was well above the previous open interest, indicating new activity.

This bullish call spread cost $0.63 to open, which is the maximum amount at risk if MBI remains below $13. The maximum gain of $2.37 would be realized if shares are above $16 at that time. (See our Education section)

MBI is up 1.81 percent to $10.66 in early afternoon trading. Shares hit a 52-week high of $13.02 a month ago and were last above $16 in September 2008.

More than 27,600 MBI options trade with calls outpacing puts by more than 10 to 1. 
Share this article with your friends


OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »