Market News

October 11, 2016  Tue 10:44 AM CT

BB&T is drawing downside option activity ahead of quarterly results next week.

optionMONSTER's monitoring system detected the purchase of more than 2,900 October 39 puts for $0.45 to $0.66 today. This represents fresh buying, as volume was well above the strike's open interest of 896 contracts.

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)

BBT is down 0.79 percent to $38.88 in morning trading but is up 9 percent in the last three months. The regional bank's next earnings release is scheduled for pre-market hours on Oct. 19.

Overall option volume in the name is twice its daily average so far today. Puts outnumber calls by a bearish 9-to-1 ratio.

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