On the day 23,500 ATML calls have traded against just 20 puts on the day a ratio of 1175 to 1.
Heavy Call Buying in ATML
Atmel Corp. was trading at 9.26 with an IV30 of 43.5 earlier today with HEAVY call buying across the board in multiple months.? So far ATML has seen over 5500 of the Aug 10 calls trade, 6400 of the Aug 11s, 5300 of the Nov 11 calls and additional call buying in July and Jan 2016.? On the day 23,500 calls have traded against just 20 puts on the day a ratio of 1175 to 1.
This behavior appears to be a mix of tied to stock and out right call buying.? One would surmise that this could be relate to a potential takeover of the company or some sort of corporate action.? There was a report out that ATML might be a decent takeover target.
Traders looking to piggy back might consider the Aug 10/11 call spread for .25 as the action has pulled august upside calls out of whack.
Aggressively Bullish Call Action in MGM
MGM Resorts was trading 20.45 with an IV30 of 30.97 up about .85 earlier. MGM is seeing heaving call action on calls expiring tomorrow.? On the day traders have bought 14000 of these calls via auto execution paying from .11 up to .20.
As these calls are expiring tomorrow so this appears to be a play on movement in the underlying between now and tomorrow night.? This appears to be an aggressively bullish play on both volatility and the underlying.? ?
Traders looking to piggy back might consider the Jun12 calls for .35 or so, which give the trader an extra week for only .15 in extra premium.
Call Spread in ETFC
Earlier E-Trade Financial Corp was trading 30.15 with an IV30 of 28.90 when a large call spread traded in October.? A customer bought 10 thousand of the Oct 33/39 call spreads paying 1.05.? While there is open interest of 15k on the 33 strike, this appears to be an opening trade as the open interest on the 33s was created on June 2nd
This trade appears to be a bet that ETFC is going to rally toward 33 or higher between now and October.? And should be considered aggressively bullish the underlying and somewhat bullish volatility in the underlying.
Traders looking to piggy back could simply look at the 33 calls as the 39 calls sold at .18 do not seem to defray that much cost.