By Pete Najarian of OptionMonster
NEW YORK -- Banco Santander (SAN) provides banking products and services, and one large trader hopes that it will provide some profits as well.
OptionMonster's tracking systems show that the trader sold 5,700 June 10 calls for 25 cents and 30 cents while buying 10,000 September 11 calls for 15 cents and 20 cents. Volume was below previous open interest in the nearer-term contracts but above it in the later strike, indicating that a long position was rolled up and out.
The trader is closing the June calls, which expire in less than three weeks, and is opening a new position three months later at a strike that is $1 higher while increasing the size of the position. The new long calls, which lock in the price where investors can buy the stock, are positioned for a rally above $11 but could expire worthless if shares remain below that level.
Santander fell 0.29% on Monday to close at $10.19, so it remains well below those September calls. But the Spanish financial firm -- which operates in Europe, the United States, and Latin America -- reached $10.25 in the previous session, its highest intraday price since August 2011.
Monday's call roll made up almost all of the option volume in the name, which was more than 5 times its daily average for the last month. More than 19,000 contracts traded overall, and fewer than 200 of them were puts.
Najarian owns SAN calls.