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Sharp move seen in Financial Engines

Chris McKhann (chris.mckhann@optionmonster.com)

A large trade in Financial Engines appears to be looking for higher volatility.

optionMONSTER systems show that more than 8,700 FNGN options have traded, well above the strike's previous open interest just 2,210 and daily average of 75 contracts. The volume is almost entirely in the September 50 puts, where a trader bought 8,575 contracts for $6.20.

Seconds later, the largest block of stock hit the tape as 623,200 shares traded for $45.438. Combined with the puts, this creates a delta-neutral position that is long volatility . So the trader is not betting on the direction of the stock, but on a big move up or down. (See our Education section)

FNGN is up 2.58 percent this morning to $45.76, a new high for the stock. The financial-services firm hit a 52-week low of $18.10 at the start of August.

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