Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 9, 2013  Tue 9:49 AM CT

IBN: SEE CHART GET CHAIN FIND STRATEGIES
ICICI Bank is rebounding this morning, and traders are betting on a floor beneath shares of Indian bank.

More than 4,000 IBN options have changed hands, about 4 times the daily average. Fewer than 50 of those contracts are calls, and almost all of the volume is in one trade.

optionMONSTER systems show that a trader sold a block of 1,500 January 30 puts this morning and then another block of 2,500 a few minutes later, both for $1.14. The volume was far above the strike's open interest of just 131 contracts before the session began, so these are new positions.

The put selling is a bet that IBN will hold above $30 through the beginning of next year. If the shares fall below that level, the traders will face the obligation to buy shares for an effective price of $28.86 once the credit from the put sales are included. (See our Education section)

IBN is up 1.13 percent to $39.42, a day after posting its lowest close since November. Shares of the Mumbai-based lender climbed to a 52-week high of $48 at the end of January and were last below $30 last June.
Share this article with your friends


Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER