Synovus trade looks for more gains
David Russell | [email protected]
optionMONSTER's Heat Seeker monitoring system detected the purchase of 4,000 November 3 calls for $0.29 and the sale of 2,000 August 2.50 calls for $0.50. Volume was below open interest in the 2.50s, indicating that an existing long-call position was rolled from one contract to the other.
The trade is extremely bullish, wagering that the Georgia-based regional lender will break long-term resistance around $3 and keep running. He or she poured an additional $16,000 into the name and now has three more months for it to rally. (See our Education section)
SNV fell 0.67 percent to $2.95 yesterday but traded above $3 earlier in the session for the first time in more than three years. The shares, which trade for less than book value, have climbed 20 percent this year as investors return to small banking stocks.
Total option volume was 18 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by more than 40 to 1.