Options Trading News

April 23, 2013  Tue 2:14 AM CT

New York Community Bancorp has pulled back this month, and now traders want to get long the Long Island lender.

optionMONSTER's Heat Seeker system detected the purchase of some 2,100 May 13 calls for $0.50. These are new positions, as the strike's open interest was just 70 contracts before the session began.

NYCB rose 0.67 percent yesterday to close at $13.48, sitting just above its 100- and 200-day moving averages. The New York lender is scheduled to release first-quarter results tomorrow before the market opens.

Yesterday's long calls, which lock in the price where traders can buy the stock no matter how far it might climb, will track the share price closely because they are in the money. But the contracts could expire worthless if NYCB falls below the $13 strike price by mid-May. (See our Education section)

About 4,000 NYCB options traded in total yesterday, 8 times its daily average for the last month. Only 234 puts changed hands, a reflection of the session's bullish bias.
Share this article with your friends



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »