Suntrust Banks (STI) is down 62 cents to $21.81 in active trading of 5 million shares. Meanwhile, put volume is outpacing call activity by a ratio of 10-to-1. Roughly 21,000 puts and 2,100 calls traded on the stock through midday. The top trade is an Apr 19 – 22 put spread, bought for 82 cents, 1450X on ISE. A customer initiated the spread, to open, and also sold-to-open 1450 Mar 23 puts on the bank at $1.05. A similar three-way traded again 882X. Separately, it appears that Mar 22 puts are being bought to open on STI. 4630 traded. Levels of implied volatility are moving up 16 percent to 38, as players await a round of stress test results Thursday. BMO says today they expect a number of regionals to announce share buybacks and dividend increases following the results.
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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.