A long-term trade sees limited downside in shares of Banco Bradesco.
More than 7,500 BBD options have traded, compared to the daily average of 1,313 in the last month. Almost all of the action is in the March 12 puts.
optionMONSTER systems show that 6,500 of those puts were sold in one print for the bid price of $0.98. There was no open interest at this strike, so the trader is clearly selling to open a new position.
The put seller apparently believes that BBD will hold up above $12 through mid-March 2014. He or she is taking on the risk of having to buy shares if they are below that level by expiration at that time. (See our Education section)
BBD has been rebounding in the last three weeks but is down 1.01 percent to $12.74 this afternoon. The Brazilian bank was at a high above $19 in mid-March but hit a low of $11.29 two weeks ago.
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