Call speculators singled out E TRADE Financial Corporation (NASDAQ: ETFC) on Monday, as investors prepare for the firm's turn in the earnings spotlight after the closing bell today. During the course of the session, the security saw roughly 19,600 calls change hands – more than 2.5 times its average daily volume of fewer than 7,700 calls, and almost nine times the number of ETFC puts traded.

Most active was the stock's at-the-money November 1.50 call, which saw about 8,900 contracts cross the tape. Call open interest at the 1.50 strike jumped from fewer than 6,100 contracts to 11,745 contracts, and implied volatility advanced 7.6% overnight, implying that the bulk of yesterday's volume consisted of new positions. However, 70% of the November 1.50 calls traded at the bid price, suggesting they were sold. By writing the November 1.50 call, the sellers are expecting the shares of ETFC to finish beneath the $1.50 level by front-month options expiration.

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