?Net, the customer paid .66 for 35,258 RAD Jan 2017 8/9 call spreads.?
Rite Aid Corp., trading 7.74 (up .01) with an IV30 of 23.37 down 17.25% with an HV10 of 18.28, is seeing bull call spreads trade.? The stock, with an ADV of 8700 and an OI of 560k, saw a customer buy 35,258 calls for .70 and .69 and then sell 35,258 at .03 and .04. Net, the customer paid .66 for the Jan 2017 8/9 call spread.? Based on open interest it is difficult to tell if this is a closing trade or opening trade.? There is high OI on both strikes. Based on the trades in the 9 strike this could be a close and roll.
This appears to be a customer either positioning or re-positioning for a move in RAD coming out of the justice department decision.? If the merger between RAD and WAG is approved, this call spread will do well.? If not, it is likely RAD drops back below $7 a share.
This trade is bullish RAD and bullish RAD vol.