Paper is selling ODP Jul 4 calls and buying stock in some cases, and in others simply selling the calls outright.
Office Depot Inc., trading 3.60 (up .07) with an IV30 of 64.10 up 3.77 and an HV10 of 51.1, is seeing call action today.? The name, which is still reeling from its failed merger with SPLS, is seeing a lot of the July 4 calls trade in what is getting near 15000 calls on the strike.? The stock has an ADV of 27000 and an OI of 412000 contracts.? Customers appear to be selling the Jul 4 calls and buying stock in some cases, and in others simply selling the calls out right.??
Regardless this appears to be a premium seller that is looking for ODP to stay below 4 dollars between now and July expiration.? The trader likely owns stock and is using these calls as an income play in ODP.
This trade should be considered bearish the underlying and bearish volatility.