Traders nibble at Diamond Foods call and put options as shares sell off

Charles Schwab Corp (NYSE:SCHW) – Shares in Charles Schwab have increased roughly 4% during the past four weeks, and front-month call buying on the name this morning suggests one or more traders are positioning for the price of the underlying to extend gains this month. The stock currently trades flat on the session at $13.41 as of 1:00 p.m. in New York. Volume in Charles Schwab Corp (NYSE:SCHW) options is heaviest at the Dec. $13 strike, where some 2,800 calls changed hands against open interest of 1,604 contracts. Time and sale data indicates the bulk of the call volume was purchased in the first five minutes of the trading session for an average premium of $0.50 each. Call buyers profit if Charles Schwab Corp (NYSE:SCHW)’s shares top the average breakeven price of $13.50 at December expiration.

Caitlin Duffy

Equity Options Analyst

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