Option volume has ramped up today on KeyCorp (KEY), with activity rising well beyond the usual level on both the call and put side of the tape. Taking a closer look at some of the major block trades on this regional banking issue, it appears that a single spread strategist is responsible for a healthy portion of this option volume.Specifically, the trader purchased a block of 10,000 June 10 calls for $0.50 each, and simultaneously sold 10,000 June 8 puts for $0.25 each. The result was a net debit of $0.25 per pair of contracts -- which means the speculator can begin collecting profits on those purchased calls if KEY rallies beyond $10.25 by June expiration.
Continue reading Buyout Buzz Inspires Bullish KeyCorp Spread
Buyout Buzz Inspires Bullish KeyCorp Spread originally appeared on BloggingStocks on Thu, 03 Mar 2011 17:00:00 EST. Please see our terms for use of feeds.
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