For the second time in as many sessions, traders are bullish on MetLife.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,000 June 37 calls for $0.86 and the sale of 2,500 June 32 puts for $0.57. The activity is quite similar to a strategy on Friday when they bought the June 37 calls and sold the June 33 puts.
Owning calls lock in the price where shares can be bought, so they benefit from a move to the upside. Selling puts lets investors collect money from a stock staying above a certain level, so they also profit if shares hold their ground or appreciate. Combining the two is highly bullish and results in a position that is strongly correlated to the underlying price performance. (See our Education section)
MET is off 0.27 percent to $35.70 in early afternoon trading. The life insurer made a 52-week high above $40 last month but has been pulling back since. It's now attempting to make a higher low than the level where it bounced in February, which could be leading some traders to believe that it's at an attractive entry point.
The next earnings report is scheduled for May 1, after the closing bell.
Total option volume in MET is almost 3 times greater than average so far today, according to the Heat Seeker.
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