Tuesday, August 18, 2009

Unusual Options Activity in M&T Bank (MTB)

M&T Bank Corp. (NYSE: MTB) is active with a super change illumination up the extraordinary actions screen as a 10,000 contract bearish October $45/$40 place spread trades.  This is celebrity considering shares are at $58.11, as the trade, which is definitely of institutional size, is anticipating shares of the Northeast bank to fall around 30% in coming months.  MTB Q2 profit fell 75% and it is possibly a bank that will need to go to the mart to improve capital, as it is considered a regional bank with a capital shortfall.  Shares are nearing the $60 field resistance level from April highs, and prior support levels.  However, upon further analyse there also was a block of more than 75,000 shares bought at the aforementioned time, so this appears to be a hedge using a spread instead of the traditional straight place purchase.

JOE KUNKLE, OptionsHawk.com


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