Limited downside seen for ICICI Bank

optionMONSTER

ICICI Bank is rebounding this morning, and traders are betting on a floor beneath shares of Indian bank.

More than 4,000 IBN options have changed hands, about 4 times the daily average. Fewer than 50 of those contracts are calls, and almost all of the volume is in one trade.

optionMONSTER systems show that a trader sold a block of 1,500 January 30 puts this morning and then another block of 2,500 a few minutes later, both for $1.14. The volume was far above the strike's open interest of just 131 contracts before the session began, so these are new positions.

The put selling is a bet that IBN will hold above $30 through the beginning of next year. If the shares fall below that level, the traders will face the obligation to buy shares for an effective price of $28.86 once the credit from the put sales are included. (See our Education section)

IBN is up 1.13 percent to $39.42, a day after posting its lowest close since November. Shares of the Mumbai-based lender climbed to a 52-week high of $48 at the end of January and were last below $30 last June.

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