A trader is looking for Synovus Financial to rally next year.
optionMONSTER's Heat Seeker system detected the purchase of 2,000 May 3.50 calls at the same second yesterday for $0.25 and $0.30. This is clearly a new position, as open interest in the strike was just 176 contracts before the trade appeared.
These long calls lock in a $3.50 purchase price for the stock through mid-May no matter how far it might climb. They could be sold earlier if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below that level. (See our Education section)
SNV rose 1.51 percent yesterday to close at $3.37. The Georgia-based regional lender has been trapped in an extremely tight range mostly between $3.20 and $3.40 since late August.
Total option volume in Synovus yesterday was 10 times its daily average for the last month. Overall calls outnumbered puts by 67 to 1, a reflection of the session's bullish sentiment.
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