Options Trading News

September 23, 2016  Fri 8:02 AM CT


A large trade is extending a bullish play in MasterCard.

optionMONSTER's market scanner shows that 5,000 October 105 calls were sold for $0.41 while 5,000 November 110 calls were purchased for $0.42 yesterday. Volume was below open interest in the October contracts, indicating that a bullish position was rolled forward by a month to a higher strike.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

MA rose 0.85 percent to $102.12 yesterday and is up 8 percent in the last three months. The credit-card company is expected to report earnings before the market opens on Oct. 28.

Overall option volume in MA was twice its daily average yesterday. Calls outnumbered puts by a bullish 5-to-1 ratio.

Share this article with your friends


Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »