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February 21, 2013  Thu 3:16 AM CT

Shares of Synovus Financial fell with the rest of the market yesterday, but one large trade anticipates gains in the long term.

optionMONSTER systems show that the trade involved 11,376 each of the January 2014 3 calls and the January 2015 4 calls. The 3 calls traded for $0.31 and the 4 calls for $0.26 in volume above the previous open interest at each strike.

The investor is buying those nearer-term 3 calls and selling the 4s in a diagonal spread, which is similar to a vertical spread but uses different expiration months. The strategy is looking for SNV to trade up to $4 in the next couple of years, but not much beyond that. The trader is also taking advantage of the higher implied volatility in the longer-term options. (See our Education section)

SNV was down 4.1 percent yesterday to $2.56, its lowest close since January. The financial-services firm has tested resistance at 52-week highs around $2.80 in the last two weeks.

More than 34,300 SNV options changed hands yesterday, compared to a daily average of 2,024 contracts.
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