17,500 of the Aug 8/5 put spreads traded for .50 and 17,500 of the Jan 2016 8/5 put spreads traded for .80.
Rolling Calls in MNTA
Momenta Pharmaceuticals Inc., which is currently trading 13.88 with an IV of 70, has traders appearing to be rolling an existing position lower.? So far traders have sold about 5000 of the Mar 16 calls, 3k of which appears to be a close. On the 16 strike against it traders have bought to open the Mar 15 calls paying .55.? It appears traders are legging the call spread for around .20 which in dollar terms relative inexpensive.
So far over 8k contracts have traded on the calls trikes, almost all of which is in March calls ADV is under 950 contracts a day in this name.? We would consider this trade to be bullish both the underlying and volatility.
Traders looking to piggyback might consider buying this spread for .20 as it is inexpensive with a favorable pay out
Rolling Calls in XLY
Consumer Discretionary SPDR Currently trading 76.71 is seeing a trader closed and rolled up a long call position.? The trader was long 5,000 of the Mar 75 calls he or she sold them @1.92 and then bought 10,000 of the Apr 78 calls for .66 in an opening trade.
This trade should be considered aggressively bullish both the underlying and volatility in the name.? Average daily volume is about 13k contract, this trade by itself is 15,000.
Consider this trader was correct I would consider jumping on the April 78 calls as a play on another move higher in XLY
Put Spreads Trade in MBI
MBIA Inc. was trading at 9.08 when a customer did 2 large put spreads that may or may not be closing.? The trader bought 17,500 of the Aug 8/5 put spreads paying .50 and 17,500 of the Jan 2016 8/5 put spread paying .80.? Both strikes in both months have large open interest.?
The stock has earnings today after the bell, so this could be a trader reposition a trade ahead of earnings.? Whether it is a close or open is hard to tell based on the open interest.? The August went up on Feb 12th as a sale, at a price of .77 so it is likely traders are closing on both of these put spreads.
Both of these trades are a touch bearish ahead of earnings tonight.