Morgan Stanley (MS) is off 39 cents to $12.39 and testing its early-June lows near $12.30 per share. One player might be anticipating a bounce after a four-day 13.3 percent dive. 18,000 Jan 17.5 calls were bought on the stock midday Monday for 26 cents per contract. It possibly closes. Open interest is 70K and the contract is falling more than 40 percent out-of-the-money. Delta is .16. More than 21,000 now traded at a VWAP of 26 cents and the market is 25 to 28 cents. MS reported earnings last week.
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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.