A trader apparently believes that gains will be limited in Bankrate.
optionMONSTER systems show that 3,115 June 20 calls were sold today for $0.70. That is virtually all of the volume in RATE, almost matching its total previous open interest and dwarfing its daily average volume of just 80 contracts.
The calls may have been sold naked in a position that has an initial bearish bias but can profit with the stock at or below $20.70 at expiration in mid-June. The contracts could also have been traded against an existing long position in a covered-call strategy , which would be bullish up to, but not beyond, the $20 strike price. (See our Education section)
RATE is up a penny to $17.02 in midday trading. The financial-rates aggregator traded above $21 a month ago but has been in a tight range for the last few weeks.
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