Put Position Rolled on MGIC Investment Corp. (MTG)

Shares of MGIC Investment Corp. MTG are lower on the session by 0.41%, currently trading at $7.34. The stock has been moving largely lower over the past six months, off from a short covering high near $13.36. One options trader is rolling his or her put position on the name today. A short while ago, the September $7.50 put was sold 5,500 times and the September $6.00 put was purchased 5,500 times for a net credit of $0.51. Volume exceeded open interest on the $6.00 strike, but not on the $7.50 strike. This is likely an options roll, where a long put holder sells out the profitable position and initiates a new long put position with a lower gamma reading. While this could be an outright bearish bet, more than likely this is a hedge to long shares. This trade has pushed overall options volume to 2x the daily average. MGIC Investment Corporation is a holding company. Through its wholly owned subsidiaries, the company provides private mortgage insurance in the United States. As of December 31, 2009, the company's principal subsidiary, Mortgage Guaranty Insurance Corporation, was licensed in all 50 states of the United States, the District of Columbia, Puerto Rico and Guam.