BBVA, the Spanish bank, trades up 40 cents to $12.42 and one investor buys a block of 3,600 Mar $11 puts at 45 cents each. Volume is now approaching 6000, vs. 6 contracts in open interest. After dipping below $9 on 1/10 shares surged and are up 38.8 percent over the past twelve trading sessions. Shareholders looking to protect some recent gains might be initiating today’s put buys. Or, it might be straight bearish trading on the view that problems related to the European Debt Crisis will resurface and sink BBVA between now and mid-March.
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.