KeyCorp Stalked by Bears

Sep.11.09 | About: Keynote Systems, (KEYN)

By David Russell

Put activity surged in KeyCorp today as bears positioned for the regional lender to fall before the end of next week.

KEY Chart

Volume in the September 6 puts surged to 19,641 contracts against open interest of 15,416, according to optionMONSTER's Depth Charge monitoring program. Institutional-sized purchases at $0.20 to $0.30 accounted for most of the order flow.

KEY fell 1.94 percent to $6.06 in morning trading. The regional lender is down 7 percent in the last month, lagging positive returns for the broader financial sector and regional-banking subgroup.

KEY needs to fall by about 6 percent by next Friday for the puts bought today to turn a profit. One potential catalyst that could move the stock before expiration is KEY's scheduled participation in the Barclays Capital Global Financial Services Conference at 2:15pm eastern time on Tuesday.

Options volume in KEY was more than four times average today, with the September 6 puts accounting for 88 percent of the activity.

(Chart courtesy of tradeMONSTER)