The option paper focused on the June 15 calls, which traded more than 6,600 times against previous positioning of just 1,064 contracts. Although there were few huge blocks, the activity built steadily as most of the larger trades priced for $0.22.
Those calls lock in the price traders must pay for the stock, so they can deliver significant leverage if Fifth Third continues to climb. The risk is that they can lose all their value if the shares don’t move quickly enough.
Fifth Third shares ended the session at $14.39, up 2.86 percent. The option volume wasn’t off the charts, but calls outnumbered puts by about 7,600 to 940 in a reflection of the day’s bullish sentiment.
—Najarian owns FITB calls.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com.