MGIC Investment Corp (MTG) $3.19 +8.50%
MGIC (MTG) adds 30 cents to $3.24 and a 16000-contract block of Jan13 $10 calls is bought on the stock for 70 cents per contract. The block likely adds to positions opened in late-October when 82500 were bought-to-open at 45 cents per contract (see 10/27 color) and mid-October when 30000 were bought for 33 cents (see 10/12 color). While the Jan 10 call on the Milwaukee-based mortgage insurance company is still more than 200 percent out-of-the-money, the initial trades are winners so far because the underlying is up 26.1 percent since 10/27 and 35.6 percent since 10/12.
Category: All Stocks, Financial Services, Small Cap Stocks
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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.
