Pullback Draws Buyers Back to CNO Financial

CNO Financial Group

Photo: Paul Alvord

has been pulling back, and now the bulls are stepping in.

Our tracking programs detected the purchase of about 2,400 December 8 calls for $0.50 and $0.55. Volume was more than 39 times open interest in the strike, so the activity resulted from new positions being initiated.

Those callslock in the price investors must pay to own shares in the provider of insurance and annuities. They can deliver significant leverage if the stock rallies, but also stand to expire worthless if it fails to move or appreciates too slowly.

CNO Financial Group

CNO Financial shares rose 3.36 percent to $7.07 yesterday. It peaked around $8.20 in late March, but has been following other financial stocks lower since then. The last earnings report on April 30 beat estimates, and the company trades for less than half book value.

Overall options volume was 12 times greater than average in the session, with calls outnumbering putsby more than 280 to 1.

—David Russell has no position in CNO.

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David Russellis a reporter and writer forOptionMonster .