Buying puts in Zions (NASDAQ: ZION)

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At least one investor bought downside protection in Zions Bancorp (NASDAQ: ZION ) during afternoon trading, as more than 22,500 April 13 puts have crossed the tape so far today. The investor paid roughly 15 cents per contract, which was the ask price at the time the trade hit the tape (around 12:07 p.m. EST).

Investors who bought these  out-of-the-money ( OTM ) puts could be betting that ZION shares will drop at least 32% throughout the next month until April options expiration (investors will make money on this put purchase if ZION closes below $12.85).

Implied volatility of the April 13 puts is 76%, compared to a 30-day historical volatility of 51%. These puts have dropped 11 cents so far on the day.

ZION shares are currently trading up 69 cents, or 3.7%, to $18.99. ZION did not announce any news this morning, and the market expects its next earnings release sometime around April 20. Keep in mind that the put-buying action we saw today suggests investors expect much more movement in the stock leading up to the company's potential earnings release date, but that the probable earnings date is after these April options expire.



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.



This article appears in: Investing , Options

Referenced Stocks: OTM , ZION

Karla Yeh

Karla Yeh

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