Puerto Rico's largest bank is still Popular among volatility sellers.
The Hato Rey-based company, which dates back to the days when Puerto Rico was still a Spanish colony, frequently saw put selling in the wake of the 2008 financial crisis as investors earned income by wagering that the stock could fall no further.
Now they're taking the other side of the trade and writing calls on a belief that upside will be limited. More than 10,000 September 2 calls crossed optionMONSTER's tracking systems yesterday for $0.25 and $0.26. All the prints occurred just a penny above the bid price, which indicates they were all sold.
BPOP rallied 4.83 percent to $2.17 yesterday as it continues to snap back after a sharp drop earlier in the month. By selling in-the-money calls, investors lock in an exit price of $2.25 to $2.26. The trade could have been the work of shareholders who want to get out of the stock or short sellers betting that a top is in place.
The company's last earnings report on July 20 beat expectations as bad loans declined, but its stock has been pummeled along with most other financial names in recent weeks.
Overall option volume was 5 times greater than average in the session.
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