Paper bought 20,000 VGK July 50 calls in two batches
Vanguards FTSE Europe ETF, trading 49.35 (up .88) with an IV30 of 19.50 and HV10 of 12.90, is seeing calls trade tied up to stock.? The ETF, with an ADV of 490 and an OI of 26,971, saw a customer buy the July 50 calls in two batches totaling 20,000 contracts.? First the customer paid .66 a contract for the July 50 calls tied up to stock totaling 10,000. Then the customer or a piggy backer paid .67 for another 10,000 tied up to stock.?
The customer, based on its timing is looking to trade a long vol position with a bias to the upside by trading these calls. The customer is leaning on VGK moving higher, but in the event that he or she is wrong by tying it to stock the customer is either replacing a long position, taking money off the table, or is able to profit from a nice drop in VGK
This trade should be considered mildly bullish the stock and aggressively bullish volatility.