The Options Insider

MS Calls Roll Down

by | Jan 20, 2015 | Unusual Activity

6268 MS Feb 35/37 call spreads went up in 2 blocks & the drawdown in MS after earnings is enough to keep the trader in the name

Call spreads trade in MS- calls roll down

MS

Shares of Morgan Stanley (MS) are down .51 to 34.38 today.? RICE is near the bottom of the 52 week range.

Paper traded 6268 MS Feb 35/37 call spreads for .60.?

  • The ADV is 6268 contracts.
  • The OI is 1912 and 12482 contracts.

The volume went up in 2 blocks.? Subsequent volume had the spread going up more times.? The trade is looking like a straight roll down to the Feb 35 strike looking for an upward bounce.? The drawdown in MS after the earnings is enough to keep the trader in the name.

  • IV 30 is trading for 30%.
  • HV10 is trading for 27%.
  • IV 30 is trading above the HV 10.

Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals

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Combo traders in GDX- rolling call spread with a put

GDX

Shares of Market Vector Gold Miners (GDX) are up .69 to 22.84 today.? GDX is in the middle of the 52 week range.

Paper traded 10000 GDX Jan 2016 23/28 call spreads and Jan 2016 15 puts for 1.86 over 1.00. ??

  • The ADV is 76k contracts.
  • The OI is 10632 and 4692 with 14968 on the puts.

The volume went up in 3 large blocks.? The spread traded closer to 20000 contracts which would make the paper opening.? The trade as priced went up long the call spread and long the put.? The trader is looking for a larger move up with a protective disaster put just in case.

  • IV 30 is trading for 48%.
  • HV10 is trading for 55%.
  • IV 30 is trading below the HV 10.

The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index.

 

 

Calls trade in YOKU

YOKU

Shares of Youku Tudou Inc (YOKU) are down .05 to 16.59 today. ??YOKU is trading near the bottom of the 52 week range.

Paper traded 5000 YOKU Mar 16 calls at 1.45.?

  • The ADV is 4366 contracts. ?
  • The OI is over 17572 contracts.

The volume went up in 1 block.? The trade was marked spread with 295,000 of stock trading 16.60.? The trade is either a close or adding more to an existing position.? YOKU was profiled last on Jan 9th for a similar trade in the Mar 17 calls which is still open (1.1 on the Mar 17s).? IV is dropping a bit so this could be more of the same driving down the IV.

  • IV 30 is trading for 41%.
  • HV10 is trading for 32%.
  • IV 30 is trading over the HV 10.

Youku Tudou Inc. (Youku), formerly Youku Inc., is an Internet television company in the People?s Republic of China. The Company?s Internet television platform enables consumers to search, view and share video content across multiple devices.