Limited gains seen for Credit Suisse
A large trade is betting on a ceiling in shares of Credit Suisse.
optionMONSTER's tracking programs detected the sale of 5,000 July 10 calls for $1.05 at the same second today. Volume surpassed open interest of 1,339 contracts, showing that this is a new position.
Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief upside will be limited through expiration. (See our Education section)
CS is up 1.12 percent to $10.82 in morning trading but is down 24 percent in the last three months. The Zurich-based bank, which reported bullish results on May 10, is scheduled to announce its next quarterly results before the market opens on July 28.
Overall option volume is about average in CS so far today.
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