MS has been one of the leaders in the financials, along with Goldman Sachs.? Traders are betting that the rally may continue.? MS was trading just over 24, with an IV of 27.75
A trader bought puts and stock on the July 20 puts 12,500 paying .53 tied to stock.? The trader then in a variation to a standard buy-write, did a buy write put spread.?
Next the trader bought the Jan 2014 20 puts paying 1.24, then sold the Jan 17 puts collecting .58.? On the net the trader bought the 20/17 put spread for .66.? The spread will protect the trader down to 17 at that point the trader would begin to experience losses again.
Both of these traders point toward continued bullishness in Morgan Stanley