Paper traded just over 4,000 of the August 10/14 call spreads, buying to close paying as high as 1.82 with the largest blocks being 837 and 642.
Lumber Liquidators Holdings, trading 12.05 with an IV30 of 77.42 and an HV10 of 51.4, saw a call spread trade today.? The stock, which reported earnings this morning and is down 1.40, has an ADV of 4400 contracts and OI of 74,000.? A customer appears to be closing as winning short call spread through the ISE order book.? The customer has traded just over 4,000 of the August 10/14 call spreads, buying to close paying as high as 1.82 with the largest blocks being 837 and 642.?
This trade was likely a short call spread set up as either a hedge or a direct play on LL dropping that now,? once earnings were release, and the stock is down is being closed for likely a nice profit. The customer had kind of a ?back door? put spread on hoping for the stock to go down.? Apparently after the drop the customer does not see much more downside
This trade should be considered neutral volatility and bullish the stock.