A large trader is betting that U.S. Bancorp will make a sharp move up or down by early next year.
A block of 9,750 January 44 calls was bought for $1.60 yesterday, according to optionMONSTER systems. This is clearly a new position, as previous open interest in the strike was just 872 contracts.
Just after, 440,000 USB shares were sold in one print for $43.75. The delta of the calls was 0.46, so the stock and option positions balance each other out in a directionally neutral volatility strategy that is looking for the shares to make a big move higher or lower by expiration in early January. (See our Education section)
USB finished the day up 0.18 percent to $43.85, a new all-time closing high. The financial stock has been trending higher from support at $40 in the last month.
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