MGIC Investment spiked higher as March began, but one trader sees limited upside in the next three months.
More than 5,000 June 5.50 calls have traded in volume well above the previous open interest of 1,078, indicating new activity. The big print of 4,756 was sold for $0.46, according to optionMONSTER systems.
These calls could have been sold naked with an initial bearish bias, but they were more likely traded against long shares in a covered call strategy. (See our Education section)
MTG is up 0.81 percent to $4.99 this morning, within its range of the last week. The mortgage insurer ran up from $3 to $6 into the start of this month, rising sharply along with other names in the sector , as seen on our researchLAB analysis tool.
More From optionMONSTER