Part two of today?s unusual options trading activity sees a buy-writer working in CS, closing calls in HRB, and trading through the offer in LEN.
Calls trade in CS- A working buy writer
Shares of the Credit Suisse Group AG (CS) are up .40 to 28.46 today.? CS is near the middle of the 52 week range.
Today paper traded 1065 CS Dec 29 call at 1.0-1.05. ?
- ADV is 405 contracts. ?
- OI is 63.
Volume went up several small blocks.? The trade in general was just on or near the bid as traders tried to sell calls.? This type of OTM call sale is consistent with a buy write and the writer is not looking for much upside here.? The yield on the short call is only 3.5% of CS?s value until December.
- 30-day implied volatility is 19%. ??
- 10-day implied volatility is 18%. ?
- 30-day implied volatility is trading above the 10-day realized volatility.
Credit Suisse Group AG is a Switzerland-based holding company engaged in private banking, investment banking and asset management areas.
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Calls trade in HRB- call closer
Shares of H&R Block (HRB) are down 06 to 33.71 today.? HRB is near the top of the 52 week range.
Today paper traded 2576 HRB Sep 32 calls for 1.95. ?
- ADV is 2315 contracts. ?
- OI is 2586 contracts.
Volume went up in several blocks.? The early trades here were hitting the bid with a 1.95 offer eventually posted.? The 1.95 offer was lifted and the seller was complete.? Most likely this was a long call holder getting out in HRB after the recent run up.
- 30-day implied volatility is? 25%. ??
- 10-day implied volatility is 10%. ?
- 30-day implied volatility is trading above the 10-day realized volatility
H&R Block, Inc. (H&R Block) through its subsidiaries provides tax preparation and banking services.
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Risk Reversal trades in LEN- paper trading through the offer.
Shares of Lennar Corp (LEN) are down .17 to 38.99 today. LEN is near the top of the 52 week range.
Today paper traded 2600+ LEN Oct 37/41 combinations for average .08 debits.?
- ADV is 5367 contracts. ?
- OI is 859 for the calls and 10 for the puts.
Volume went up in scattered volume.? Many small contract trades went up buying the 41 calls and selling the 37 puts.? Sizes did vary with some puts trading though the bid and some calls trading through the over.? On balance this paper is looking for a risk reversal, buying calls and selling puts to get long LEN.
- 30-day implied volatility is 23%. ??
- 10-day implied volatility is 18%. ?
- 30-day implied volatility is trading above the 10-day realized volatility
Lennar Corporation is a homebuilder and a provider of financial services and through its Rialto Investments (Rialto) segment. The Company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through unconsolidated entities in which it has investments.