Shares of Big Lots Inc. (BIG) are down .62 to 37.39 today. ?BIG is in the middle of the 52 week range.
Today paper traded 4000 BIG Jun 40 call over Jun 35/37.5 put spreads for.15. ?The ADV is 1615 contracts.? The OI is 1343 in the Jun 40 call and less than 200 each on the Jun puts.
The volume went up in 3 blocks marked spread.? At the execution time paper bought the put spread and sold the calls just off of the bid.? Normally this is a protection play for a long stock holder.or bet on BIG going down.? The protection cost .15 but the put spread means the buyer of the collar is not expecting a big move down, more of a small slide to close under $40.? Earnings are the 30th.
30-day implied volatility is 39%.?? 10-day implied volatility is 22%.? 30 day implied volatility is trading above 10 Day Historical volatility.
Big Lots, Inc., through its wholly owned subsidiaries, is a North America’s closeout retailer. At January 28, 2012, the Company operated a total of 1,533 stores in two countries: the United States and Canada