Downside position doubled in Comerica
A large trader is increasing a downside position in Comerica.
optionMONSTER's monitoring program shows that 1,500 June 45 puts were sold for $1.27 to $1.40 and 3,000 June 42 puts were purchased for $0.18 to $0.25 on Friday. Volume was below open interest in the higher contracts, indicating that a trader is taking some money off the table while rolling a bearish position to a lower strike and doubling its size.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
CMA fell 2.52 percent to $44.15 on Friday but is up 24 percent in the last three months. The Dallas-based regional lender, which reported bearish results on April 19, is scheduled to announce its next quarterly numbers before the market opens on July 19.
Overall option volume was 3 times greater than average on Friday. Puts outnumbered calls by a bearish 6-to-1 ratio.
More From optionMONSTER
