OptionsHouse

Options Trading News

February 19, 2013  Tue 2:14 AM CT

FITB: SEE CHART GET CHAIN FIND STRATEGIES
Fifth Third Bancorp has been pulling back from multi-year highs in recent days, but traders are betting that further downside will be limited.

More than 7,000 May 13 puts traded in a strong selling pattern for $0.08 on Friday, optionMONSTER's tracking systems show. The volume was more than 10 times higher than the strike's open interest of 673 contracts before the session began, clearly indicating that these are new positions.

The put sellers are looking for FITB to stay above $13 through expiration in mid-May. If the stock falls below that strike price, the traders will face the obligation to buy shares at that level. (See our Education section)

FITB slipped 0.53 percent on Friday to close at $16.05. The financial firm bounced sharply at the $14 level in mid-November and climbed to $16.77 on Feb. 7, its highest price since the financial crisis hit the stock market in September 2008. But shares dropped last Wednesday after CEO Kevin Kabat, speaking at the Credit Suisse Financial Services Forum, said margins are tightening in the mortgage business.

Friday's put selling pushed total option volume in Fifth Third to 12,761 contracts, more than 5 times its daily average in the last month.
Share this article with your friends


Related Stories

FITB

Fifth Third investor buys time for rally

January 28, 2016

The regional bank has lost a quarter of its market value just in the last month, but one trader is extending a bullish position in the name.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »