Will ICE heat up in the long term?

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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 long calls if shares rally. But there is also considerable downside risk because the short puts will obligate the trader to buy shares if they fall below $170. (See our Education section)

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 months.

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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: ICE

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As of 12/24/2014, 02:12 PM


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