This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MBIA, Radian Draw Call-Buyers

Stocks in this article: MBI RDN ABK

By David Russell, reporter at OptionMonster

NEW YORK ( TheStreet) -- Big banks such as Goldman Sachs (GS) and JPMorgan Chase (JPM) are struggling, and now capital is shifting to financial guarantors such as MBIA (MBI), Radian (RDN), and Ambac Financial (ABK).

OptionMonster's tracking systems detected a flurry of bullish activity in those companies and others Thursday even as the broader financial sector struggled.

MBIA was the busiest of the group, with option volume surging to 15 times greater than average. Investors snapped up the November 11 calls and the November 12s, paying 99 cents to $2.13, and 52 cents to $1.77, respectively, for large blocks.

Ambac, which normally trades about 6,000 contracts, saw volume of 76,817 and heavy activity in the January 1.50 and October 1 calls before closing the day up 19% to 95 cents. It was the biggest winner in the group, though it has been trading for under $1 for most of the last year as investors doubted its ability to survive as a going concern.

Radian climbed 6.83% to $8.91 and saw volume of more than 22,000 contracts, dominated by call-buying. A similar pattern also appeared in Assured Guaranty (AGO) and PMI (PMI).

By contrast, the Financial Select Sector SPDR (XLF) exchange-traded fund, which tracks the broader financial sector, fell 1.78% to $14.60. Large banks and brokerages have been leading the sector to the downside, following a pattern of weakness that has been in place for months as the economy deleverages and underwriting fees get squeezed.

Russell has no positions in the stocks mentioned.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters