The largest call action is on the OCP Feb 7: traders are buying the Feb 7 calls outright through exchange auto ex.?
Office Depot, currently trading 5.71 up .21 with an IV of 91.27 and an HV10 of 29%, is seeing lots of call sweeping action today.? Traders have been buying through the system and tied to stock calls everywhere from Jan to July.? Notably the July 6 calls.? However, the largest call action is on the Feb 7 strike where traders are buying the Feb 7 calls outright through exchange auto execution systems.? Traders began paying .34-.35 with the largest block trading .38 10,000 times.?
This trader clearly thinks the corporate action scene in ODP is not done and has bought calls to prove it.? IV is now trading at a 60 point premium to actual movement and IV is up 14 vol points today alone.? This trade is a bet that ODP will move above 7.40 by Feb expiration.? In order to happen we would likely need a restart of ODP-Office Max discussions.
This trade should be considered aggressively bullish both volatility and the underlying security.