Banco Bradesco bounced sharply off multi-year lows yesterday, but one trader is betting that any further gains will be limited.
The Brazilian bank's stock was up 6.3 percent to close at $14.20 after falling to $13.17 on Friday, its lowest level since September 2009. Yesterday's gains bring the stock back only to the low end of its trading range from Wednesday, as it has fallen from above $18 in late March.
optionMONSTER's systme show that 11,493 BBD options traded, only 380 of which were puts. This compares to a daily average of 3,100.
More than 7,116 September 15 calls changed hands, with a single trade of 7,000 of those calls sold for the bid price of $0.60. This was done against open interest of 897, so it was a new opening position.
The options were likely sold against long stock, either as a directionally neutral play or as a covered call trade, which would be bullish up to the $15 strike price.
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