Zions Bancorporation has been lifting itself higher after months
of consolidation, and one bull is slapping on a leveraged trade.
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
The trade pushed overall option volume in ZION to 10 times greater
than average so far today.
(Chart courtesy of tradeMONSTER)
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