Monday, January 25, 2010

Fifth Third (FITB) - Front Call Buyer into New Highs

FITB is trading 12.41. The LIVEVOL™ Pro Summary is below. Note the falling IV30™. This issue was brought up to me by broker extraordinaire Mike Bristow with VTBrokers.

The company has traded over 41,500 options today in the first few hours on total daily average option volume of 10,119. Further, 38,000 + have been calls for a 10:1 call:put ratio. The Company Tab snapshot is below (click the image to enlarge).

10,500 Feb 14 calls have been traded and 14,500 May 14 calls traded as well. Feb 12.5/14 1x3 Call spread traded 3000 x 9000 at 8 cents and crossed on the PHLX (sell 14 buy 12.5). The day's biggest trades and Option Tab snapshots (Feb and May) are inlcuded below (click either image to enlarge).

Note the low open interest relative to trade size in the Feb 14 and May 14 calls - these are opening trades. Finally the Charts Tab snapshot is presented below. You can see the stock is hitting new recent highs off of a bounce from earnings. 52 wk. high is 12.87.

The PnL for the 1 x 3 call spread is inlcuded below.

Max Gain with stock at $14.
Break Even Low: 12.58
Break Even High: 14.71

This is bullish with a limit. The naked call purchases in May are obviously bullish unless they traded with stock.

Legal Stuff:

No comments:

Post a Comment