Net, paper paid .70 for the DLTR 97.5-100-105 September call tree.?
Dollar Tree Inc., trading 96.14 (down .96) with an IV30 of 23.50 and an HV10 of 11.85 saw a Christmas tree trade.? A customer bought 5,000 Sept 97.5 calls for 3.20 and sold 5000 Sep 100 calls and 5,000 at 1.95 of the Sep 105 calls at .65.? Net the customer paid .70 for the 97.5-100-105 September call tree.? This is in a stock that has an ADV of 5100 contract and OI of just 84,000 contracts.
This appears to be a customer that think DLTR is going to rally in and around earnings at the end of the month, but that the stock will not EXPLODE higher.? The customer reaches maximum profit about 100 and below 105 at September expiration.? If the stock moves too hard, the customer could lose.
This trade is bullish DLTR and bearish DTLR volatility.