A trader covered a short position by buying 7,000 SVU April 5 calls for .80.?
SuperValu Inc., trading 5.61 (up .05) with an IV30 of 44.16 and an HV10 of 44.07, saw a call buyer today.? The stock, with an ADV of 2700 and OI of 35,000 contracts, saw a trader close April 5 calls.? A trader that was short the April 5 calls 7,000 times covered that short position buying 7,000 of the April 5 calls for .80.? This is likely a cover of an income call sale.
The fact that the trader is choosing to cover denotes some belief that SVU could keep running.? The trader will likely be looking for an opportunity to sell something else in the next few days if the stock stops running higher.
This trade should be considered bullish the underlying.