Financials have been on a northward journey for months, and the bulls want to go places with MetLife.
OptionMonster's tracking programs on Friday detected the purchase of 20,000 January 45 calls for $1.15 and the sale of an equal number of January 50 calls for $0.40. Volume was more than 6 times open interest at each strike, indicating that new positions were initiated.
With this trade, known as a vertical spread, the investor has a right to buy the life insurer's stock for $45, but must sell it for $50 if it goes to that level or higher. The trader paid $0.75 for that $5 spread, which would translate into a profit of 567 percent if MetLife shares go to the top of that range — massive leverage, given the price of the options compared with the stock.