Shares of Tyco International (TYC) are trading higher on the session by 1.35%, at $27.76. The stock has been trending lower after completing its separation into two companies, but it is finding bids today.
One trader is taking the opportunity to buy upside calls in size today. A short while ago, the January 2013 $30.00 call was purchased 36,210 times, near the offer, for $0.50; volume on the strike has since grown to over 40,000. Open interest is a paltry 186 contracts, indicating massive new positioning.
The trade has pushed overall call volume to 17x normal volume.
30-day implied volatility is off slightly today despite the large purchase, down 1.1% to 25.38%. 10-day realized vol remains just above 19%. At $0.50, the Jan13 $30 calls were purchased for 23% vol.
Tyco International Ltd is a Switzerland-based holding company of Tyco Group. The Tyco Group is a diversifies, global provider of diversified products ranging from electronic security and alarm monitoring to fire-fighting equipment and breathing apparatus, water purification and flow control solutions.?