Market News

November 30, 2016  Wed 6:45 AM CT

A large trader is positioning for a possible pullback in Bank of New York Mellon.

OptionMonster's monitoring program detected the purchase of 3,602 December 46 puts for $0.48 at the same second yesterday. Open interest in the strike was just 118 contracts before the trade appeared, showing that it is a new position.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

BK rose 0.04 percent to $47.05 yesterday and is up 14 percent in the last three months. The bank's next quarterly results are expected to come out in pre-market hours on Jan. 19.

Overall option volume was about average in BK yesterday. Puts outnumbered calls by a bearish 6-to-1 ratio.

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