HIG – Hartford Financial Services Group, Inc. – Bullish options investors picked up out-of-the-money call options on the insurance and financial services firm this morning with shares of the underlying stock trading 1.65% higher to stand at $24.83 as of 10:35 am (ET). It looks like HIG-optimists anticipating continued share price appreciation through expiration this month purchased 1,900 calls at the June $26 strike for an average premium of $0.66 apiece. Investors long the calls make money if HIG’s share price rises 7.4% to surpass the average breakeven price of $26.66 by expiration day. Bulls also populated the higher June $27 strike to purchase 1,400 calls for average premium of $0.39 per contract. Shares of the underlying stock must surge 10.3% over the current share price and exceed the average breakeven point on the calls at $27.39 before higher-strike call buyers start to accrue profits. We note current call open interest levels at both strikes exceed current trading volume. This could mean investors are closing out short call stances rather than establishing fresh bullish positions.
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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.
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