Intercontinental Exchange has lagged the market for months, but
traders apparently think that it will catch up in the long term.
optionMONSTER's Heat Seeker monitoring program yesterday detected
the purchase of 2,400 January 2016 210 calls for $13.40 and the
sale of an equal number of January 2016 170 puts for $15.10. There
was no open interest in either strike before the activity appeared,
which indicates that new bets were placed.
The trade generated a credit of $1.70 per contract and is highly
bullish, with the potential to earn unlimited profits through the
if shares rally. But there is also considerable downside risk
will obligate the trader to buy shares if they fall below $170.
ICE rose 0.75 percent to $187.72 yesterday but is down about 17
percent since hitting an all-time high early this year. The stock
has bounced around $185-$190 several times since April, holding at
about the same level where it peaked last August.
Earnings have mostly been strong, and the company recently sold
part of its stake in Euronext. It's lagged along with other
financials, which have been the worst sector for the last three
Total option volume in ICE was 7 times greater than average in the
session, according to the Heat Seeker. The company's next earnings
report is scheduled for Aug. 7.
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.
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