The bears are circling Interactive Brokers, which has been
limping for months.
optionMONSTER's Depth Charge monitoring system detected the
purchase of about 1,300 October 14 puts for $0.35 and the sale of a
matching number of October 14 calls for $0.31. Volume was more than
7 times open interest at both strikes.
The trade cost about $0.04 and is highly leveraged to downside in
the brokerage stock, which gapped lower following its last two
quarterly reports. The date of the next release hasn't yet been
announced, but last year's schedule suggests it will occur around
IBKR is down 0.5 percent to $14.05 in afternoon trading. It has
lost almost one-fifth of its value in the last six months, compared
with a decline of less than 2 percent for the broader financial
The stock has been attempting to stage a weak rally since the
summer and now seems to be hitting resistance at its 100-day moving
average. That could make be leading some chart watchers to expect
another push to the downside, which would help explain today's
The position could be a speculative downside bet or the work of a
shareholder looking to
hedge against a drop
. (See our
section for more on how calls and puts can be used to manage risk
and place directional bets.)
Overall option volume in IBKR is quadruple the daily average in the
session, according to the Depth Charge.
Interactive Brokers is a competitor of optionMONSTER's sister
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