Options Take Action on Banks and Amylin

The options market continues to boil on the outlook for the financial sector and market volatility in general, according to Rebecca Darst of Interactive Brokers. And one pharamceutical company is drawing attention as well.

Options traders are "looking for downside from current levels," she said Thursday morning on CNBC. There has been specific action on Merrill Lynch , Bank of America , and Well Fargo , she said. (See video for her full comments).

This action has been taking place against a backdrop of market general volatility. Darst said traders have been placing bets on continued volatility by taking positions in VIX options .

In the meantime, Amylin Pharmaceuticals has drawn particular options action, Darst said.

Traders are seeking longer positions at lower put levels (options that give some a right to sell a stock at a certain price in the future), she said, which suggests Amylin stock will stay at low prices for some months.

Check options traffic for ...

  • Merrill Lynch
  • Bank of America
  • Wells Fargo
  • Amylin