OptionsHouse

Options Trading News

May 15, 2013  Wed 9:41 AM CT

RDN: SEE CHART GET CHAIN FIND STRATEGIES
An unusual long-term call trade is targeting Radian today as the mortgage-insurance firm hits two-year highs.

optionMONSTER systems show that a trader sold 4,050 January 2015 15 calls for $3.20, below the listed bid price at the time, in volume that was far above previous open interest of just 710 contracts. Seconds later, a block of 2,625 January 2014 10 calls traded for $4.80 against open interest of 16,481 at that strike.

This could be a new diagonal spread, which would be bullish up to $15 in the long term. But this could also be a roll of a short-call position, with the trader buying back the now in-the-money 10 contracts and selling the longer-term 15 calls. (See our Education section)

RDN is up 2 percent to $14.27 this morning as shares trade at their highest level since May 2010. The stock was trading at $10 less than a month ago and at $2 a year ago.
Share this article with your friends


Related Stories

RDN

Radian bulls hoping for breakout

August 13, 2015

The mortgage insurer has been rebuilding its balance sheet as it consolidates above highs from 2010.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »