One investor wants to turn time into money using CIT Group.
optionMONSTER's tracking systems detected the sale of 10,000 January 2014 pus for $3.60 against open interest of just 845 contracts. The trade accounted for most of the volume in the small-business lender in yesterday's session.
CIT fell 1.35 percent to $33.69 and has been following the rest of the financial sector lower for the last year. The company said on Oct. 25 that lending volumes were up and bad loans fell in the third quarter, its second strong earnings report in a row.
The stock hasn't traded below $20 since it was relisted in December 2009 following a brief bankruptcy. Yesterday's put seller apparently thinks that CIT will remain above that level for the next two years. If correct, he or she will keep the $3.60 premium and the options will expire worthless. (See Chris McKhann's recent column on selling puts)
Overall option volume in the name was 7 times greater than average in the session.
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