Morgan Stanley's stock is rising enough that option straddle buyers can profit

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Morgan Stanley’s stock accelerated to the upside after the opening bell, enough that buyers of the option strategy known as a straddle can make money.

Straddles for Morgan Stanley’s stock were priced on Tuesday so that buyers could make money if the stock moved more than $4.17 in either direction on Wednesday after earnings are reported, according to data provided by Matt Amberson, principal at Option Research & Technology Services.

The average move on the day that the previous 12 earnings reports were released was $3.54, Amberson said.

The stock was surging $8.22, or 7.3%, in recent trading, to trade well above the Oct. 14 record close of $112.28. It was headed for the biggest one-day gain since it ran up 8.4% on Nov. 9, 2020.

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