Shares of KeyCorp (KEY) are trading lower on the session by 1.47%, at $8.40. The stock has been consolidating between the $8.00 support level and the $9.00 resistance level for the past two months.
One trader is betting that the stock will continue to be range bound over the next few months. A short while ago the March 2013 $8/7 strangle was sold 12,015 times, near the bid, for $1.02. Given open interest on both strikes, 1,210 and 6,263 contracts respectively, this is clearly new positioning.
30-day implied volatility is down 1.4% today to 28.76%, while 10-day historical vol is registering 35.20%. At $1.02, the strangle was sold at roughly 33.5% vol.
KeyCorp is a bank holding company for KeyBank National Association. Through KeyBank and certain other subsidiaries, the company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services.