A trader apparently expects E*Trade Financial to continue holding its ground after falling sharply last week.
ETFC is down 1.55 percent to trade at $8.26. The online brokerage has been trading in a relatively right range this week. It was above $9.50 on Wednesday and Thursday of last week before gapping down after its earnings announcement.
The option volume is almost entirely in the November 8 puts, according to optionMONSTER's tracking systems. A trader sold 3,000 of those contracts for the bid price of $0.17 in volume that was almost twice the previous open interest in the strike, so this is a new position.
The put selling is a bet that ETFC will continue to hold above the $8 strike for the next three weeks. The trader is also showing the willingness to buy shares if they are below that level but will do so for an effective price of $7.83, including the credit from the put sale.
Disclosure: E*Trade is a competitor of optionMONSTER's sister company, tradeMONSTER.
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