Learn the trade here. Make it on tradeMONSTER

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


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Options on Futures are Still Options

Education & Strategy

Before you quit that day job...

I try to avoid popular-culture references, but this week's "American Ninja Warrior" struck a chord. One contestant had laid it...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER