Capital One (COF, news, chart, volatility) puts are active. The stock is up $3.70 to $43.44 and 23,000 put contracts traded, compared to 6,500 calls. The top two trades of the day include 5,000 November 40 puts traded offerside for $4.10 a contract and 5,000 November 30 puts traded bidside for $1.40. With the volume exceeding existing open interest, the action appears to be opening of a bearish spread. If so, the strategist was paying $2.70 per spread and is perhaps concerned about the short-term outlook for the credit card company heading into an earnings report on Thursday after the closing bell.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.