Volume Spike Investor

M&T Bank Corp. (NYSE: MTB) is active with a large trade lighting up the unusual actions screen as a 10,000 contract bearish October $45/$40 put spread trades.  This is notable considering shares are at $58.11, as the trade, which is definitely of institutional size, is anticipating shares of the Northeast bank to fall around 30% in coming months.  MTB Q2 profit fell 75% and it is possibly a bank that will need to go to the market to raise capital, as it is considered a regional bank with a capital shortfall.  Shares are nearing the $60 major resistance level from April highs, and prior support levels.  However, upon further review there also was a block of more than 75,000 shares bought at the same time, so this appears to be a hedge using a spread instead of the traditional straight put purchase.

JOE KUNKLE, OptionsHawk.com