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Strategy counts on big move in MetLife

Chris McKhann (chris.mckhann@optionmonster.com)

Shares of MetLife have climbed to the highest levels in a year, and one trader is looking for a sharp move higher or lower.

optionMONSTER systems show that the big trade in MET options comes in the May 37 puts. A trader bought 2,500 of those contracts for the ask price of $0.99 in volume far above previous open interest of just 33 contracts, indicating new activity.

About a minute later the largest block of MET stock traded, with 80,000 shares purchased for $39.1563. The combination of stock and options makes the overall position a delta-neutral play that is betting on higher volatility , with the trader looking for a big move up or down. (See our Education section)

MET is up another 0.3 percent at $39.15 this morning, their highest level since this time last year. The insurance company's shares were down at support around $31 in mid-November.

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