Keycorp is up more than 40 percent in the last three months and attracted an unusual call spread yesterday.
KEY is closed at $7.99 yesterday, gaining a penny on the session. The regional bank is below its intraday highs from last week but is at its highest levels since Aug. 1. The stock has been climbing steadily since posting a 52-week low of $5.59 in early October.
Yesterday's option volume totaled 12,423 contracts, dwarfing Keycorp's daily average of 1,020 in the last month. optionMONSTER's data systems indicate that almost all of this volume was in one roll of a short-call position.
A trader bought 6,000 January 7.50 calls for $0.52 against open interest of 15,654 and sold the same number of the March 8 calls for $0.44. This was against open interest of 2,167.
Given that the January calls are in the money, this is almost certainly done against long shares in an extension of a covered call position. That means that the trader is looking to collect option premium but doesn't see the stock going very far in either direction in the coming months. (See our Education section)
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