The Options Insider

Risk Reversal Goes up in BURL

by | Nov 23, 2015 | Unusual Activity

6000 BURL Dec 46/50 call spreads and 6000 Dec 39 puts went up in several blocks on the PHLX. ?

BURL

Shares of Burlington Stores Inc. (BURL) are up .43 to 44.76 today.? BURL is near the lower end of the 52 week range.

  • Paper traded 6000 BURL Dec 46/50 call spreads for 1.70 and 6000 Dec 39 puts for 1.05. ?
  • The ADV is 2358 contracts.? ?
  • The open interest is 1016 and 7600 on the call spreads and 29 on the puts.

The volume went up in several blocks on the PHLX. ?The total volume of spreads went over 8000 so the paper is most likely opening.? As traded the call spreads look buy and the puts look sell as an aggressive long play on BURL.? Earnings are on the 24th so there is some risk on the 39 strike.

  • IV 30 is trading for 64%.?
  • HV10 is trading for 78%.?
  • IV 30 is above the HV 10.

Burlington Stores, Inc. is a retailer of branded apparel. As of January 31, 2015, the Company had 542 stores, inclusive of an Internet store, in 44 states of the United States and Puerto Rico.