What's behind Bradesco put selling
Traders are selling puts in Banco Bradesco for the second day in a row.
optionMONSTER's tracking systems detected the sale of 20,000 January 12 puts in a single print for $0.99. This is clearly a new position, as open interest in the strike was 5,174 contracts before the trade appeared.
That follows 6,500 March 12 puts that were sold yesterday for $0.98. The put sellers are looking for the Brazilian lender to stay above $12 through their expective expirations, but they will be on the hook to buy shares if BBD falls below that level. (See our Education section)
BBD is down 2.06 percent to $12.57 this afternoon. Shares popped after the bank reported second-quarter results on Monday but have pulled back since. The stock was above $17 in late May but plummeted to a four-year low of $11.29 on July 5.
Today's put sale makes up almost all of BBD's option volume of 22,428 in the session so far. That is already 13 times its daily average for the last month.
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