Paper bought 10,000 SWN June 6 calls for .63 and sold 10,000 June 7 calls at .13. The bulk of the trade went up in one block of 9927.
Southwestern Energy Corporation, trading 6.49 (down .27) with an IV30 of 49.50 and an HV10 of 43.73, saw a large call spread trade today. The stock, with an ADV of 11,300 and an OI of 250,000 contracts, saw a trader buy 10,000 June 6 calls for .63 and sold 10,000 June 7 calls at .13. The bulk of the trade went up in one block of 9927.? Net, the trader bought the June 6-7 call spread for .50
This spread acts much like a risk reversal.? The trader is locked in on P&L between $6 and $7/ share.? If the stock rallies to $7, the trader can make .50. ?If SWN drops, the most the trader can lose is .50, the price of the call spread.? This could be a stock replacement trade, or simply someone that thinks SWN is going to go back to 7.00.
Trade should be considered bullish the underlying a neutral volatility.