Trade sees top in Morgan Stanley

optionMONSTER

A large trader sees a cap on gains in Morgan Stanley.

optionMONSTER systems show that 19,009 October 29 options have changed hands, led by a block of 18,262 that was sold for the bid price of $0.89. This is clearly a new position, as volume was 6 times the strike's open interest before the trade appeared.

These calls could have been sold naked with an initial bearish bias. But it is more likely that they were traded against long shares in a covered-call position , the most popular option strategy. (See our Education section)

MS down fractionally to $27.78 after hitting $27.98 earlier this morning, its highest level in more than two years. The investment bank's shares have more than doubled from their lows of a year ago.


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