Icici Bank has been suffering along with most emerging-market
stocks, but one investor apparently thinks that it's on solid
optionMONSTER's monitoring systems detected the sale of more than
1,600 December 30 puts for $1.24. Volume was more than 5 times open
interest at the strike.
The investor is now obligated to buy shares in the Indian bank if
they close below $30 on expiration, but including the credit earned
their entry price would be $28.76.
IBN rose 3.28 percent to $33.40 yesterday. The shares have been
moving sideways all year but have recently held their 200-day
moving average near $32. They also spent most of June consolidating
around $30, which could be leading some chart watchers to expect
support around that level.
While sentiment has been negative toward emerging markets such as
India, IBN's last earnings report in July beat expectations as low
interest rates increased its profit margin. Bad loans also fell.
is a common way to express a bullish sentiment toward a stock
because it lets the investor buy shares in the event of a pullback.
And they'll make money even if it doesn't drop and let them get
long. (See our
Overall option volume in the name was 11 times greater than
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