Options Trader Dumps This Plunging Bank Stock

UBS has been dropping like a rock, and one option trader is apparently getting nervous.

OptionMonster's tracking systems detected the purchase of 5,485 December 15 puts on Wednesday, mostly for $0.25. Volume was 9 times open interest in the strike.

UBS stock ended the session up 0.38 percent to $15.83, but only after testing a four-month low of $15.67. The put buying occurred after the stock probed that level, which was also below its 200-day moving average — a key support area.

The Swiss bank has been falling since Oct. 26, when it reported a stunning drop in investment-banking business. It rebounded briefly from that decline, made a lower high, and then plunged.

Wednesday's put buying reflects fear that UBS will break support at its 200-day moving average and head toward $15.

The trade pushed total option volume in the name to 10 times greater than average, with puts accounting for more than 90 percent of the activity.


Russell does not hold significant numbers of shares in UBS.

Options Trading School:

UBS' Peers and Rivals Now:



JPMorgan Chase

Banco Santander



David Russell is a reporter and writer for OptionMonster.