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????????????????????????????? ? ?? ?? Trader Closes Out Winning Hedge in CMA
Comerica Incorporated (CMA – currently trading $32.36 with an IV30 of 44% and an HV10 of 44%) has seen heavy activity in the Feb 37 puts. CMA (OI of 201,000 contracts and an ADV of 5100) saw a customer buy-to-close the Feb 37 puts in two blocks totalling 15,000 contracts. The customer bought 9,000 of the Feb 37 puts for $4.30 and 6,000 for $4.35 tied up to just over 1.3 million shares of CMA at the price of $32.80.
Based on the OI this trade was almost certainly a close. 30,000 of these same puts traded on January 4th with the stock about 9 dollars higher.? The initial trade, based on the stock tie was likely a hedge and the trader is closing out that hedge now. There will likely be another 15,000 of these traded in the coming hours or days. This trade should be considered neutral the stock and neutral volatility.