How leveraged bet is playing Zions

By
A A A

Zions Bancorporation has been lifting itself higher after months of consolidation, and one bull is slapping on a leveraged trade.

ZION optionMONSTER's Heat Seeker tracking system detected the purchase of about 10,000 January 26 calls for $0.45 and the sale of an equal number of January 25 puts for $0.74. Volume was more than 4 times open interest in both strikes.

The trader collected a credit of $0.29 and will make infinite profits if the Utah-based lender rallies past $26 on expiration. He or she isn't at risk of lose money as long as it remains above $25.

ZION rose 2.93 percent to $24.94 in early afternoon trading and is up 18 percent in the last month. It's been climbing along with other regional lenders as investors position for fewer loan losses and better earnings amid a strong economy.

The stock peaked at $30 in April but then fell through late August, when it bottomed around $18. It slowly ground higher since then and has been accelerating to the upside since the beginning of December.

The trade pushed overall option volume in ZION to 10 times greater than average so far today.

(Chart courtesy of tradeMONSTER)



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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: ZION

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

48,099,947
  • $16.09 ▲ 0.50%
40,277,806
  • $102.50 ▲ 0.24%
40,236,499
  • $19.57 ▲ 2.35%
31,092,510
  • $49.75 ▲ 0.65%
30,795,218
  • $34.92 ▲ 0.78%
29,910,855
  • $3.63 ▲ 0.83%
24,019,154
  • $13.06 ▼ 0.38%
23,753,906
  • $74.82 ▲ 1.31%
As of 8/29/2014, 04:04 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com