Paper bought 10,846 MET Aug 40 calls at 2.97 & sold 10,846 Oct 40 calls at 3.60.?
MetLife Inc., trading 42.71 with an IV30 of 25.15 and an HV10 of 8.50%, saw a call roller today.? The stock, with an ADV of 11,600 and OI of 389k contracts, saw a customer buy 10,846 of the August 40 calls at 2.97 and then sell 10846 of the October 40 calls at 3.60.? Net, the customer sold the Aug-Oct 40 call spread at .63.? The August was a close and the October an open, thus this appears to be a call writer rolling back dates.
This customer likely sold the August 40s against MET as a way to collect income, with no intent of selling the stock position.? Now that the under has rallied, the trader likely does not want to lose the stock.? Thus, the trader is rolling back and collecting some premium.
This trade should be considered bearish the underlying and bearish MET vol.