Shares of Allergan (AGN) are trading higher on the session by 1.59%, at $92.22. The stock has been all over the place over the past few weeks surrounding the company?s Q3 earnings results.
One trader is selling upside on the name today, betting that realized volatility will now trend toward the 3-month average. Shortly after the opening bell the December $95.00 call was sold 3,450 times, near the bid, for $1.15. The spread was $1.10/1.30 at the time of trade.
Volume exceeded open interest on the strike, indicating new positioning.
The trade has pushed overall call volume to 5x normal volume with 3,588 calls traded.
30-day implied volatility is off 4% today to 18.91%, while 10-day realized vol is registering 20.60%. At $1.15, the Dec $95 call traded at 17% vol.
Allergan, Inc. is a multi-specialty health care company focused on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products.?