by Houghton and Atkeson 06/02/08
With KeyCorp (KEY) shares trading near their 52-week low ($19 per share), options investors are betting KEY finds a way to go even lower.
Today, investors are buying the KEY Sept 15 Puts (KEYUC) upward of 9,000 times. Some say buy low, sell high. In Key, options investors are saying buy lower before you can sell high.
In fact, after paying as much as 85 cents for these puts, these investors believe KEY is going over 25% lower before finding a bottom.
For more fresh options trading ideas from Andrew and Nick, click here.
Sam Collins
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
