Why one trader is selling calls in MGIC
Chris McKhann | [email protected]
More than 5,000 June 5.50 calls have traded in volume well above the previous open interest of 1,078, indicating new activity. The big print of 4,756 was sold for $0.46, according to optionMONSTER systems.
These calls could have been sold naked with an initial bearish bias, but they were more likely traded against long shares in a covered call strategy. (See our Education section)
MTG is up 0.81 percent to $4.99 this morning, within its range of the last week. The mortgage insurer ran up from $3 to $6 into the start of this month, rising sharply along with other names in the sector, as seen on our researchLAB analysis tool.