Options Trading News

April 9, 2013  Tue 9:49 AM CT

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

Related Stories


Notable option activity in equities

October 5, 2015

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »