Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 15, 2013  Fri 9:38 AM CT

MTG: SEE CHART GET CHAIN FIND STRATEGIES
MGIC Investment spiked higher as March began, but one trader sees limited upside in the next three months.
 
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.
Share this article with your friends


Related Stories

MTG

How bearish trade is playing MGIC

October 6, 2014

One trader is using puts to position for potential losses in he mortgage insurer, which is up today but down sharply since June.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Make Money in a Volatile Market

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER