Schaeffer's 43rd Anniversary Stock Picks in 2024

Options Volume Explodes on Scandal-Ridden LendingClub Corp (LC)

LendingClub Corp (NYSE:LC) call volume hit an annual peak on Wednesday

May 12, 2016 at 9:17 AM
facebook X logo linkedin


It's been a wild week for the shares of LendingClub Corp (NYSE:LC), after the consumer lending firm's CEO abruptly resigned following a highly publicized loan scandal. Since last Friday's close, LC stock has plunged 42.5% to $4.08 -- and tagged a record low of $3.95 yesterday. Against this backdrop, LC stock volume hit a 52-week high of roughly 96 million shares traded on Monday, while options volume has exploded, topping out at an annual peak of 182,383 options traded yesterday.

Drilling down, the majority of Wednesday's action was driven by call players, with 150,661 LC call options on the tape -- an annual high. By contrast, around 31,722 put options traded, far fewer than the 12-month peak of 109,483 contracts exchanged on Tuesday.

Most active by a mile was LC's June 4 call, where 102,862 contracts traded. Open interest surged by 88,291 contracts overnight, making this the top open interest position on the stock -- with 88,907 calls currently in residence. According to Trade-Alert, the majority of Wednesday's activity was driven by call buyers, meaning traders expect LC to extend its lead over $4 through the close on Friday, June 17, when back-month options expire.

Also receiving notable attention was LC's October 4 call. Specifically, a massive 28,550-contract block was apparently sold to open -- per data from the International Securities Exchange (ISE) -- for an initial credit of about $2.7 million (number of contracts * $0.95 premium collected * 100 shares per contract). However, Trade-Alert suggest this may be part of a larger covered-call strategy, as one LendingClub Corp (NYSE:LC) shareholder attempts to dull the pain of the stock's recent spiral.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

 

Nvidia and its powerful chips are the face of artificial intelligence.

But while everyone’s patting Nvidia on the back for record earnings…

It’s quietly moved on to the next phase of AI it plans to conquer…

Nvidia recently unveiled essential blueprints for this crucial $1 trillion pivot.

Click here now and find out about the three companies Nvidia absolutely needs to succeed in this vital new AI frontier. (ad)
schaeffer's opening view daily market newsletter

                                                                                                   
๐Ÿš€ Try Options Under $5 Trade Alerts 
Target +150% Profit w/RT Entry&Exit

                                                                                                    

 
 

                                                                                                   
This stock is paying its highest dividend
in 15 years . . . ๐Ÿ“ˆ (c/o Investors Alley)

                                                                                                    

 


                                                                                                   
Top 10 Investment Picks Poised For
Major Upside Before 2025 ๐Ÿ’ฐ
 (FREE)

                                                                                                    

 

join schaeffer's market recap daily stock marketnewsletter

 

                                               ad                                                  
Some of Nvidia’s partners have already
surged as much as 4,744%. This is next …

                                                ad