- Kinder Morgan Inc (trading $20.87 with an IV30 of 37.65 and an HV10 of 34.83) is seeing bullish call action today.
- The stock (with an ADV of 34,400 contracts and OI of 1,750,000) has seen over 132,000 calls trade today via two call spreads. ?
- A customer closed and rolled a short call position in October buying 35,000 of the Oct 23 calls for a $.10 then selling 35,000 of the Oct 22 calls at $.29. The 22?s were an open, the 23?s were likely a sale. ??
- In addition a potentially different customer bought 25,000 of the Jan 22.5 calls paying $.81 and then sold 25,000 of the Jan 25 calls at $.27 to create a call spread.
- The first trade is likely short calls that were overwritten against the stock. These calls were closed and then rolled down one strike with about 9 days to expire on those options. ?
- The second trade was an opening Jan call spread that is looking for a rally in the underlying over the next few months.
- The Oct trade is likely bearish volatility and neutral the stock in the near-term. ?The Jan trade is bullish the stock and bullish volatility in the mid-term.
