Paper bought 40,800 ITB Jan 2018 35 calls for 1.25 & 10,200 for 1.20.
IShares Dow Jones US Homebuilder ETF, trading 26.52 (down .32) with an IV30 of 21.20 and an HV10 of 21.28, is seeing bullish action today.? The ETF, with an ADV of 1500 and OI of 51,500 contracts, saw a customer buy 51,000 calls in January 2018 today.? The customer bought 40,800 of the ITB Jan 2018 35 calls for 1.25 and 10200 for 1.20.? Net the customer paid 1.24 for 51,000 of the Jan 35 calls.
This is ca customer that clearly believes the underlying going to rally over the next two years.? This appears to be a long term play that homebuilding will see a nice rebound with in the next 18 months.? The trader will do extremely well if ITB break 36.24 over the next 18 months.
This trade should be considered bullish eh underlying and bullish volatility.