Morgan Stanley is climbing to a nine-month high, but one trader may be looking for the stock to trade sideways for several months.
A trader sold two blocks of 7,125 July 24 calls for $0.51 and $0.52, according to optionMONSTER systems. Open interest in the strike was just 504 contracts, so this is a clearly a new position.
These calls could have been sold against stock, as a block of 313,500 MS shares traded for $19.97 just before the options moved. That would make the overall position essentially delta-neutral and possibly a short-volatility play.
MS is up 3.34 percent to $20.27, its highest level since late March, when shares came off highs just above $21. The bank's shares have been trending higher from support at $12 since late July.
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