Paper bought 50,000 V Jan 110 2018 calls & sold 50,000 Jan 2018 120 calls.
Visa Inc., trading 81.08 with an IV30 of 17.02 and an HV10 of 15.92, saw a large LEAPS call spread trade.? The stock, with an ADV of 22,000 and an OI of 410,000, saw a customer buy 50,000 of the Jan 2018 110-120 call spreads.? The customer bought 50,000 of the Jan 110 2018 calls for 1.35 and sell 50,000 of the Jan 2018 120 calls at .46.? Based on the open interest both sides of this trade were opening.
This is a customer that is playing a long term upside trade in V.? The customer wanted to find an inexpensive way to go long V for a long time and sees the underlying potentially rallying 50% between now and January 2018 which is about 18 months away.?? With a payout over 9-to-1, this is nice play on move higher.
This trade should be considered bullish V and mildly bullish volatility.