A customer sold 22,850 EMR Jan 52.5 calls at .20
Emerson Electric Co. (EMR) was trading earlier today 48.23. It has an IV of 23.35%, an HV10 of 17.15, an ADV of about 3900 contracts, and an average open interest of around 118,000.? Today, a customer did a large block call overwrite, tied to some stock.? The customer sold 22850 Jan 52.5 calls at .20 tied up.? This is in addition to many auto swept call sales.? On the day 23500 calls have traded.
This appears to be an income trade with a customer that thinks EMR is going to creep higher toward 52.5 into the New Year.? The customer is hoping EMR does not take off higher but moves higher slowly.? That being said, these is over 25,000 open interest on the line, so it?s entirely possible this customer was long and wrong on EMR.