tradeMONSTER: Trade free for 90 days

Options Trading News

September 12, 2013  Thu 2:45 AM CT

MBI: SEE CHART GET CHAIN FIND STRATEGIES
Bond-insurance firm MBIA attracted a large call trade yesterday as shares continued to fall.

A trader bought 10,000 January 13 calls for the ask price of $0.59 and sold the same number of January 16 calls for the bid price of $0.12, according to optionMONSTER's Heat Seeker system. Volume was above previous open interest in the lower strike but below it in the higher contracts.

The trader could be rolling a long-call position down or opening a vertical spread. In the latter case, he or she is spending $0.47 for the possibility to make  $2.53 if MBI is above $16 at expiration in mid-January. (See our Education section)

MBI finished the day down 2.87 percent to $11.52, its lowest closing price since shares gapped much higher in early May. They got above $16 shortly after that but then trended lower from there. 
Share this article with your friends


Related Stories

MBI

MBIA attracts vote of confidence

November 24, 2014

While the loan guarantor has been drifting for years, better conditions in the mortgage market have lifted related companies.

tradeMONSTER: Trade free for 90 days

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER