Market News

December 21, 2016  Wed 8:20 AM CT

Someone sees resistance on the chart for Santander Consumer USA.

OptionMonster's monitoring programs show that 4,700 April 16 calls were sold for $0.80. There was no open interest at the strike before the trade appeared, an indication new money was put to work.

Short calls generate income and fix the price where a stock must be sold. (See our Education section.) The strategy is usually done in conjunction with long shares, reflecting a belief upside will be limited through expiration.

SC rose 0.14 percent to $13.90 yesterday and is up 28 percent in the last three months. The auto-lending company peaked around $16 in December 2015, before breaking lower. That could make some chart watchers expect the level to become resistance and explain the call selling.

Overall option volume was 4 times greater than average in the session.

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