Options Trading News

September 16, 2016  Fri 5:47 AM CT


A trader is extending a downside position in Capital One Financial.

optionMONSTER's market scanner shows that 1,540 September 69 puts were sold for $0.22 while 1,540 Weekliy 68.50 puts expiring on Sept. 23 were purchased for $0.73 yesterday. Volume was below open interest in the nearer-term contracts, which expire at the end of tomorrow's session, indicating that a bearish position was rolled forward by a week to a lower strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

COF rose 0.57 percent to $70.99 yesterday and is up 9 percent in the last three months. The credit-card and banking company is expected to announce quarterly results after the close on Oct. 20.

Overall option volume was about average in COF yesterday. Puts outnumbered calls by a bearish 4-to-1 ratio.

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