The Options Insider

CIT Unusual Activity Review from 3/3

by | Jun 8, 2017 | Unusual Activity

CIT Unusual Activity Review from 3/3

CIT

On March 3, Shares of CIT Group (CIT) were up 1.03 to 43.02.?At the time, CIT wass near the top of the 52 week range. On that day, paper traded 16000/25500 CIT?Apr21?43 and 45 calls for 1.06 and .46.???

  • The ADV was 3095 contracts.??
  • The open interest was 22034 and 3331 contracts.
  • The volume went up in 2 blocks on the PHLX marked spread.??

Paper looked like they bought the block of Apr 43s on?Mar 24th?and are rolling the big dollars up to the 45 strike for more contracts and an extra boost.? As priced, the trader was still bullish if this is the naked long position and the bump volume would indicate that.

Update as of June 8:
This trade clearly didn?t work out – the timing was poor as CIT didn?t break the 45 handle until a few days later during earnings. If they had rolled out one more week this trade would have worked, or at least broken even.?