Ambac stocks:Out-of-the-Money Call Volume Climbs on Ambac Financial Group, Inc.

Source:schaeffersresearch.com
Call volume has ramped up on Ambac Financial Group, Inc. (ABK) this week. On Monday, call trading climbed to nearly three times the usual level, with about 27,000 contracts crossing the tape. On the International Securities Exchange (ISE) alone, traders on Monday bought to open 2,743 calls on ABK, compared to just 103 puts -- resulting in a single-day call/put volume ratio of 26.63.

ABK price chartMuch of the call-buying activity was centered on ABK's July 1 strike, where 3,022 contracts changed hands. The majority of the calls traded at the ask price, suggesting they were purchased, and implied volatility rose 2.7% by the close. This strike added 2,070 contracts to open interest overnight, confirming that new bullish bets were added here on Monday.

Meanwhile, in today's trading, call volume on ABK has already surged to three times the norm. Most of the volume is concentrated at the stock's November 2.50 call, which has seen more than 10,000 contracts trade. A slight majority have changed hands at the ask price, but with open interest here totaling more than 20,700 contracts, it's unclear whether today's activity consists primarily of liquidations or new additions.