CIT Group has been weak, and traders see headwinds against a
optionMONSTER's tracking systems detected the sale of about 3,500
January 40 calls, most of which priced for $1. Volume was almost
triple open interest in the strike.
The investors are now obligated to sell shares in the
small-business lender for $40 if they close at or above that level
on expiration. They probably owns the stock and sold the calls to
earn income on their positions
. (See our
CIT is down 0.96 percent to $34.99 in morning trading. It lost more
than one-quarter of its value between mid-March and early June but
has been slowly working higher since. The next earnings report is
scheduled for the morning of July 30.
Overall option volume is twice the daily average so far in the
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.