Bullish Trading in ETFC Near-Term Call Options

ETFC – E Trade Financial Corporation – The online brokerage and financial services firm popped up on our scanners at the start of the session due to bullish trading in near-term call options. E*Trade’s shares increased as much as 4.8% this morning to secure an intraday high of $15.25 and was rated new ‘market perform’ by an analyst at JMP Securities. Earlier this week, some analysts speculated the online brokerage firm could be purchased for upwards of $6 billion, while others said an acquisition is not likely for at least one year. Bullish players picked up at least 2,700 calls at the October $16 strike for an average premium of $0.27 apiece. Call buyers are poised to profit should ETFC’s shares surge 6.7% to exceed the average breakeven price of $16.27 ahead of October expiration day.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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