Nerves were on edge in Huntington Bancshares yesterday, with the
stock near long-term highs and the broader market selling off.
optionMONSTER's Depth Charge monitoring system detected the
purchase of more than 5,700 April 7 puts for $0.53. The volume was
11 times the open interest of 499 contracts in the strike at the
beginning of the day, so this is clearly a new position.
The investors now have the right to sell shares in the Ohio-based
regional bank for $7 in the next half-year, regardless of how low
they fall. This
precludes the need to sell stock and keeps the traders in the game
for more upside if shares continue to climb. (See our
section for more on how options can be used to manage risk.)
HBAN fell 0.28 percent to $7.08 yesterday but is up 29 percent so
far this year. It's been consolidating above the same price range
that was resistance since early 2011. Most chart traders would
probably consider that bullish, but they may still fear a drop if
the S&P 500 heads lower.
The company is also scheduled to report third-quarter results next
Thursday, Oct. 18.
Overall option volume was 6 times greater than average in the name,
with puts outnumbering calls by more than 130 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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