In small blocks, traders have bought over 3700 TXT Jun 39 calls, 4200 Jun 40s, and 3100 Jun 41s.
Textron Inc., trading 39.59 with an IV30 of 25.55 up 3.75% and an HV10 of 15.64 is seeing heavy call action today.? The stock, with an ADV of 1230 and open interest of 16613, is seeing heavy June call action amounting to almost as much volume as the total open interest.? In small blocks of no more than 500 at a time, traders have bought over 3700 of the June 39 calls paying as high as .5,? 4200 of the June 40s paying as high as .51 and 3100 of the Jun 41s paying up to .43.
This was all sweeping and has been right so far as TXT is now up over 1.00 from the lows.? However, this trader is not taking these positions off and appears to think that the stock is going to keep moving.? With these buys, IV has popped and continues to rise.? With the price at its current level and his or her strike prices this one might have some real upside setting up.
This trade should be considered bullish the underlying and volatility.