The Options Insider

M Calls and Puts Trade Ratio-Style with Stock

by | Jun 2, 2016 | Unusual Activity

5000 M Jul 34 calls trade over Jul 32 puts for a .12 debit. ?

M

Shares of the Macy?s Inc (M) are up 1.44 to 34.45 today.? ?M is near the low end of the 52 week range.

  • Paper traded 5000 M Jul 34 calls over Jul 32 puts for a .12 debit.?
  • The ADV is 13181 per day.?
  • The OI is 12807 on the calls and 1513 on the puts.

The volume went up in 2 blocks on the PHLX marked buy write.? 380k shares of M went up and the pricing suggests call buyers and put sellers with short stock creating a ratio backspread to the upside.? The stock is very profitable on a sudden move higher or to the low 30?s but is more bullish in nature.? The stock print would be delta neutral on that size.

  • IV 30 is trading 31%.?
  • HV10 is trading for 25%.?
  • IV 30 is trading above the HV 10.

Macy’s, Inc. is an omnichannel retail company operating stores, Websites and mobile applications under various brands, such as Macy’s, Bloomingdale’s and Bluemercury.