The trader is essentially pocketing the credit and making a bet that XME will keep moving higher.?
SPDR S&P Metals and Mining ETF, trading 15.92 with an IV30 of 41.75 and an HV10 of 47%, saw a large call roll today.? The customer that was long the Feb26 weekly 15 calls closed the call position and rolled it back to March 4 expiration and up to the 16 strike.?? The ETF with ADV of 10,500 contracts and OI of 120,000 had this roll trade 20,000 times for a net credit to the trader of .70.?
The trader is essentially pocketing the credit and making a bet that XME will keep moving higher.? Considering these were purchased on the Feb 12 with XME lower than it is now, the customer is pocketing a nice profit.
This trade is aggressively bullish XME and bullish volatility in the name.