Paper bought 7,000 XRT July 42 calls & sold 14,000 July 43 calls for a net debit of .01.
SPDR S&P Retail ETF, trading 41.96 (up .88) with an IV30 of 21.21 down 1.44 and an HV10 of 14.60, saw a call 1-by-2 trade.? The ETF, which has an ADV of 21,110 and OI of 305,000, saw a customer execute a purchase of 7,000 of the July 42 calls paying .81 against it the customer sold 14,000 of the July 43 calls at .40.? Net the customer paid .01 to be long the July 42/43 bull 1-by-2.?
The customer is hoping XRT moves higher between now and July expiration toward 43.00 a share.? But the customer does not want to be too right.? If the stock runs up above 44 dollars a share the customer begins to turn a winner into a loser.
This trade should be considered mildly bullish the underlying a bearish volatility.