US Bancorp is seeing huge options trading, both calls and puts — that appear to be linked.
USB averages 24,000 calls per day, but some 30,000 calls changed hands Thursday in the first 45 minutes of trading alone, according to OptionMonster's tracking systems.
Puts are also well above normal levels, especially at the June 7.50 strike, where they have been aggressively sold on the bid.
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Those puts were down $0.30 on the day, as USB shares rallied $0.35 to $11.36. That action is clearly not normal, as these puts should be moving perhaps 20 percent to 25 percent of the move of the underlying stock, or about $0.10 to $0.12 — not $0.30!
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Much of the call buying, at the March 12.50 strike, and the put sales at the June 7.50 appear to be related because the large block trades — some including as many as 3,000 contracts — were executed just seconds apart on the same exchange. USB is down 1.27 percent in midday trading to $10.88 after spending most of the morning in positive territory.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.