Genworth Financial popped this morning after a positive report over the weekend, and traders apparently believe that the stock will hold its gains.
More than 10,000 April 10 puts have traded against open interest of 740 contracts, according to optionMONSTER systems. Almost all have been sold, with a big print of 5,453 going for $0.27.
The put selling is a bet that GNW will hold current levels. Put selling is a way to play a pop like this one without buying the stock at potentially lofty levels. (See our Education section)
GNW is up 6.45 percent to $10.48 today after Barron's cited a promising outlook based on its mortgage business and internal changes at the financial-services firm. Shares have doubled over the last four months and are trading at their highest level since July 2011.
More than 54,000 GNW options have changed hands today, compared to a daily average of 13,000 over the last month.
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