Paper bought 13000 TEP Dec 45 calls & sold the Dec 52.5 calls in what appears to be a roll based on the open interest.
Tallgrass Energy Partners LP, trading 50.00 (up 4.15) with an IV30 of 35.50 and an HV10 of 17, saw a call spread trade today.? The stock, with ADV of 1350 and an OI of 36,600, saw a customer buy a December call spread.? The customer has bought 13000 of the December 45 calls paying up to 5.80 up to 7.00 and then sold the December 52.5 calls at 2.20 up to 3.10 in what appears to be a roll based on the open interest.
This appears to be a call overwriter that does not want to lose his or her stock given the move in TEP.? The customer closed the 45 calls then sold the 52.5 calls to reduce the premium outlay and retain control of the stock.? The customer clearly thinks that TEP is not going to drop back to 45 soon, but is comfortable that TEP might not pop over 52.50 by December expiration.
This trade should be considered mildly bullish TEP and bearish TEP volatility.