Large trade is bullish on regional banks
A large trade is betting on gains in the SPDR KBW Regional Banking Fund in coming months.
optionMONSTER's tracking program detected the purchase of 10,950 June 37 calls for $2.41 in one print yesterday. Volume was more than 81 times open interest at the strike, showing that this is a new position.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
KRE fell 0.68 percent to $38.05 yesterday but is up 16 percent in the last month.
Overall option volume was 3 times greater than average in the fund yesterday. Calls outnumbered puts by a bullish 9-to-1 ratio.
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