State Street hit a four-year high earlier today, and one trader is looking for shares to hold those gains.
optionMONSTER systems show that a trader sold 4,000 May 57.50 puts for the bid price of $2.26. This is clearly a new position, as open interest in the strike was just 59 contracts before the session began.
The put selling is a bet that STT will remain at or above current levels. The trader could also be hoping that the stock would pull back below $57.50, which would allow him or her to buy shares at an effective price of $55.24 when the credit from the put sale is included. (See our Education section)
STT is off 0.14 percent to $57.11. Earlier in the session the bank-holding company reached $58.15, its highest level since the collapse in September 2008. Shares have been climbing from $40 back in August.
The total option volume of more than 4,400 in the name isn't huge, but it is still 3 times its daily average over the last month.
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