A trader is expecting more volatility in shares of Fifth Third Bancorp as its stock slips lower.
Almost all of the day's option volume in FITB is in the May 14 puts. At trader bought 10,000 of those contracts for the ask price of $1.04 in volume that was more than 10 times the previous open interest, according to optionMONSTER's tracking systems.
About a minute later, a block 460,000 FITB shares was bought for $14.21. The combination of the stock and options creates an overall strategy that is delta-neutral , which means that the position will profit if FITB moves sharply higher or lower. (See our Education section)
FITB is down 1.56 percent to trade at $14.19 this afternoon. The banking firm was trading at $13.75 two weeks ago after coming down sharply from at three-year high of $16.16 on Oct. 5.
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