U.S. Bancorp gets a show of support
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems detected the sale of 4,504 March 29 puts for $0.05 in 10 seconds yesterday. The volume was nearly 10 times higher than the strike's open interest of 467 contracts before the session began, clearly indicating that this is a new position.
USB rose 0.52 percent yesterday to close at $33.13. The financial-services company gapped higher with the broad market rally at the beginning of the year but has been trapped in a tight range since then, now trading right at its 100-day moving average.
Yesterday's put seller is betting that the stock will hold above $29 through expiration in mid-March. If USB falls below that strike price, which has held as support for the last year, the trader will face the obligation to buy the shares. (See our Education section)