Markets

Trade sees more downside in Ally

The bears are coming back for more downside in Ally Financial.

optionMONSTER's Depth Charge monitoring program detected the purchase of 4,100 January 2017 13 puts for $0.65 to $0.70. There was no open interest at the strike before the trade appeared, which indicates new money was put to work.

Puts lock in the price where a stock can be sold. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

ALLY fell 0.6 percent to $19.93 yesterday and has lost 16 percent of its value this. The auto-lending company has struggled since an abortive rally in the spring kept it trapped below 2014's highs.

Overall option volume was twice the daily average, with puts outnumbering calls by 5 to 1.

Subscribers to our premium InsideOptions Pro service already doubled their money betting against the stock following a bearish alert on Sept. 22 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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