Trader bets on floor under Capital One
Chris McKhann | email@example.com
COF closed at $57.04, down 0.64 percent. The financial company almost touched $58 early in the session, a huge resistance level that the stock hit four times in the last six weeks. It hasn't closed above that level since 2007.
More than 7,000 COF options traded yesterday, twice its daily average. Topping the action were 5,000 January 2014 47 puts that were sold for the bid price of $4.65 against open interest of just 462 contracts.
The put selling is a bet that COF will hold above $47 through that long-term expiration. The trader is also showing that they believe that COF won't be much more than $4.65 above the current price at that time. (See our Education section)