A large trade is betting on a floor in shares of financial insurer MBIA.
optionMONSTER systems detected the sale of 4,000 May 7 puts for the bid price of $0.69 yesterday. This is clearly a new position, as open interest in the strike was just 155 contracts before the trade appeared.
The put seller is looking for MBI to hold above $7 through mid-May. The trader is also taking on the risk of having to buy shares if they are below that level. (See our Education section)
MBI gained 3.28 percent yesterday to close at $10.40. The stock had been trending lower since gapping up from below $10 to above $15 in early May, and it was at five-month lows at the end of last week.
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