Itau Unibanco Shares Surge Amid Unprecedented Options Activity

A frenzy of speculative trading has gripped shares of Brazilian banking giant Itau Unibanco. The surge is being fueled by extraordinary volumes in the options market and confirmed dividend payments, even as financial analysts revise their outlooks on the stock.

Financial institutions have been updating their assessments. JPMorgan formally raised its price target for Itau Unibanco to $8.00, reiterating an "Overweight" rating. The broader consensus among market researchers currently stands at "Moderate Buy," with an average price target approximating $7.09.

Portfolio adjustments by major institutions during Q2 2025 presented a mixed picture:
* Notable Buyer: Jump Financial LLC boosted its holdings by 66.6%, acquiring an additional 261,826 shares.
* Significant Seller: OCONNOR, a unit of UBS Asset Management, trimmed its stake by 19.1%, divesting 341,858 shares.

Unprecedented Surge in Options Volume

The derivatives market witnessed exceptional activity on December 10, 2025. Traders purchased 392,078 call option contracts on the stock in a single session. This staggering volume represents an increase of 36,070% compared to the average daily volume of just 1,084 contracts.

Such aggressive call buying indicates that certain market participants are making substantial bets on price appreciation or hedging large positions. The most active contract was the January 16, 2026 expiry with a strike price of $4.55.
Key metrics of this activity:
* Call Options Traded: 392,078 contracts
* Put/Call Ratio: Market sentiment was overwhelmingly bullish, with calls comprising 98.29% of all traded contracts.

Should investors sell immediately? Or is it worth buying Itau Unibanco?

Dividend Announcements and Yield Appeal

Beyond the speculative wave, income-focused investors are responding to concrete distribution news. Itau Unibanco declared a dividend of $0.3502 per share. The stock traded ex-dividend on December 11, 2025, with a payment date set for December 29, 2025. Based on the current share price, this translates to a substantial annualized yield.

Furthermore, on December 9, the bank released its 2026 schedule for "Interest on Capital" (IOC) payments. Shareholders can anticipate monthly distributions starting February 2, 2026, amounting to 0.01765 BRL per share (gross). This dual-stream payout mechanism continues to be a central pillar of the investment thesis for the equity.

Market Context and Regulatory Update

At the close on December 11, Itau Unibanco shares were quoted at $7.51. The stock is currently trading within a 52-week range of $4.42 to $8.13 and remains technically above its 200-day moving average of $6.64.

The macroeconomic backdrop is complex. While the U.S. Federal Reserve has cut interest rates, Brazil's central bank is expected to maintain its benchmark Selic rate at a high 15% to combat persistent inflation. This divergence between loose U.S. monetary policy and restrictive Brazilian policy directly influences Itau Unibanco's funding costs and net interest margins.

Additionally, on December 12, the company filed an updated 2024 reference form to ensure regulatory compliance during this period of heightened trading activity.