One investor apparently thinks that Banco Bradesco deserves more
time to rally.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 5,000 March 19 calls for $0.20 and the sale of an equal
number of December 18 calls for $0.07. Volume was below open
interest in the December contracts, indicating that an existing
trade was rolled forward in time.
The investor now has an additional three months to benefit from
upside in the Brazilian lender, paying $0.13 to adjust the
position. Without that move, the trader would have seen premiums
dwindle at an accelerating pace in the December contracts as
expiration approaches in three weeks.
BBD is up 1.97 percent to $16.60 in afternoon trading. The stock
has been fluctuating in a range for the last year and is now
attempting to get above its 200-day moving average. If it succeeds,
some chart watchers may consider it the beginning of a bullish
Total option volume is 7 times greater than average so far today,
with calls accounting for virtually all the activity.
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