Traders are positioning for a possible drop in KeyCorp by the end of this year.
optionMONSTER's market scanner shows that about 2,500 December 11 puts were purchased for $0.47 to $0.49. Volume surpassed open interest of 618 contracts, an indication new money was put to work.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
KEY rose 0.69 percent to $11.65 yesterday and is up 12 percent in the last month. The Cleveland-based regional bank reported bearish quarterly results on Tuesday.
Overall option volume was 3 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 11-to-1 ratio.
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