MetLife has peeled back from its March highs, but now buyers are nibbling again.
Activity lit up early yesterday in the June 32 calls, and more than 6,100 of the contracts traded by the end of the session. The largest chunk priced for $1.14, and others followed from $1.19 up to $1.28, according to our Heat Seeker.
Those calls lock in the price investors must pay to own shares in the company, which provides insurance, annuities, and employee benefit programs in the United States, Japan, Latin America, the Asia Pacific, Europe and the Middle East. They can generate decent leverage from a relatively small appreciation in the stock price but can expire worthless if it doesn't move. (See our Education section)
MET dropped 2.47 percent to close at $30.85 yesterday. The insurance company has fallen since peaking more than $39 two months ago, even though its yield is strong and valuation reasonably cheap.
More than 26,000 options traded overall in the name yesterday, more than twice the average amount.
(A version of this post appeared on InsideOptions Pro yesterday.)
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