Zions Bancorporation Options Traders Bet On Stock Dipping This Much By May Expiration

Shares of bank stocks, including Zions Bancorporation ZION, traded lower on Thursday amid broader financial sector concerns after PacWest Bancorp PACW said it is exploring strategic options.

On CNBC’s " Options Action," Mike Khouw of Optimize Advisors said Zions Bancorporation traded at 4x average daily options volume on Thursday, with puts outpacing calls volume by 3-to-1.

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There were buyers of 8,190 of the May 15 puts at an average price of $3.28 per contract, Khouw mentioned.

The trader expects Zions Bancorporation’s stock tumbling at least 40% by May expiration.

Zions Bancorp, last month, reported worse-than-expected Q1 earnings results.

Price Action: Zions Bancorporation shares dipped 12.1% to close at $19.93 on Thursday, but added 3.4% in today’s pre-market trading session..

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