Covered Call Traded on Charles Schwab (SCHW)

Shares of Charles Schwab Corp. SCHW are higher on the session by 0.41%, currently trading at $14.72. The stock has been moving largely lower over the past four months, off from recent highs near $20.00. One options trader is betting that the stock can make a bit of a rally from these levels. The January 2011 $16 call was sold 5,000 times (in two blocks of 2,500 contracts), on the bid, a short while ago. In isolation this would be a bearish bet, but the transaction was tied to stock, thereby indicating that a covered call position was entered into. The Charles Schwab Corporation is a financial holding company. Through its subsidiaries, the company engages in securities brokerage, banking and related financial services. As of December 31, 2009, SCHW provided financial services to individuals and institutional clients through two segments: Investor Services and Institutional Services.