On the day, paper sold over 10,000 PAA May 22.5 calls most for .50 with the largest print being 7800 and 1054.?
Plains All American Pipeline, trading at 20.67 with an IV30 of 57 and an HV10 of 44.40, saw a customer sell calls in May.? On the day customers sold over 10,000 of the May 22.5 calls most for .50 with the largest print being 7800 and 1054.? This is a name that has an ADV of 7100 and OI of 142,000 thus a significant play.
This is like a long holder of the stock overwriting May 22.5 calls against his or her position. If the stock rallies past 23 dollars the customer would net yield an over 10% return between now and expiration. If not the customer is collecting a decent premium of 2.5% of the value of the stock over the next 45 days or so.
This trade should be considered neutral the underlying and bearish volatility.