Sharp move seen in Brazilian bank Itau
Chris McKhann | [email protected]
The 5,000 ITUB options that have traded so far are all in one trade. optinoMONSTER systems show that a trader bought 5,000 June 19 puts for $1.23 in volume that was 200 times the previous open interest in the strike, so it is a new position.
Less than a minute later, the biggest block of stock changed hands, with 470,000 shares bought for $18.47. The combination of stock and options creates a long-volatility strategy that is looking for shares to make a big move up or down, in this case with a slightly bullish bias. (See our Education section)
ITUB is down 1.2 percent to $18.31 this morning. The bank was above $19 coming into the week, its highest level since last March. Shares have been trending higher from support at $14 in the last four months.