Paper bought 7750 PAGP Sep 12 calls paying .10 against open interest of 25,600.?
Plains GP Holdings LP, trading 11.57 (up .26) with an IV30 of 29.30 and an HV10 of 24.58, saw a large block of calls trade this morning.? The stock, with an ADV of 2200 and an OI of 53,000, saw a customer buy lots of the September 12 calls for .10.? All day the customer bought 7750 of the Sep 12 calls paying .10 against open interest of 25,600.? A large block of 15,000 of these traded on August 16th? ?as part of a call roll, thus these could be a customer closing a short call overwrite.
The customer was short these at .31 from August 16th and now appears to be paying .1 to cover these calls.? It?s entirely possible the customer will be looking to sell the 12s in October or November in the near futures if the customer was shorts these as part of an income play.?
This trade should be considered neutral the stock and volatility.