Ocwen Financial has been getting killed, but traders are looking for a bounce.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 8,270 January 30 calls for $2.15 and the sale of an equal number of January 40s for $0.40. Volume was below open interest at the higher strike, so there are two possible explanations.
One is that the trader rolled a losing position down as the stock tumbled lower. He or she could also be opening call spread in hope of a rebound to levels the stock saw only last week. (See our Education section.)
OCN fell 1.51 percent to $26.20 in morning trading, and has lost more than half its value since the year began. It's had risen 500 percent between 2011 and 2013, and has been more recently surrendering those gains.
Total option volume is twice the daily average, with calls outnumbering puts by more than 18 to 1.
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