Puerto Rico's largest bank is still Popular among volatility
The Hato Rey-based company, which dates back to the days when
Puerto Rico was still a Spanish colony, frequently saw put selling
in the wake of the 2008 financial crisis as investors earned income
by wagering that the stock could fall no further.
Now they're taking the other side of the trade and writing calls on
a belief that upside will be limited. More than 10,000 September 2
calls crossed optionMONSTER's tracking systems yesterday for $0.25
and $0.26. All the prints occurred just a penny above the bid
price, which indicates they were all sold.
BPOP rallied 4.83 percent to $2.17 yesterday as it continues to
snap back after a sharp drop earlier in the month. By selling
in-the-money calls, investors lock in an exit price of $2.25 to
$2.26. The trade could have been the work of shareholders who want
to get out of the stock or short sellers betting that a top is in
The company's last earnings report on July 20 beat expectations as
bad loans declined, but its stock has been pummeled along with most
other financial names in recent weeks.
Overall option volume was 5 times greater than average in the
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