All time record option volume was seen in O?Reilly Automotive (ORLY) today as an 80,000 contract 8-legged spread trades on the Amex in which the initiator bought 3,000 Feb 85 puts, 7,000 Feb 80 puts, and 14,200 Feb 95 calls, while selling 3,900 Feb 90calls and 6,600 Feb 85 calls (all Febs appear to be closing), against a buy of 10,000 May 90 calls and sale of 17,500 May 100 calls and a sale of 17,500 May 80 puts, all opening. The trader collected $3.5 in net premium, and the structure appears to roll some b bullish trades (and strangle sales) from late last year when shares were near 85, into a very large bullish call-spread collar. ORLY trades about a million shares a day, so the notional size here is well above the typical flow in the underlying ?shares.
