Keycorp traders buying protection

By David Russell,

Shutterstock photo

Keycorp reports earnings next Tuesday morning, and investors want protection.

optionMONSTER's Depth Charge tracking system detected the purchase of about 11,000 September 8 puts for $0.33 to $0.35. Volume was more than twice the open interest in the strike.

KEY, which ended yesterday's session unchanged at $8.01, has been skidding lower since mid-February along with most other banks. The Cleveland-based company's last earnings report on April 18 beat expectations as charge-offs declined, but profitability was squeezed as its balance sheet continued to shrink.

The stock has been attempting to hold support around $8 and make a higher low above its December level around $7.50.

Overall option volume in the name was 14 times greater than average yesterday, with puts outnumbering calls by 7 to 1, according to the Depth Charge.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Options
Referenced Stocks: KEY

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