- Mattel Inc. trading $26.03 up $.36 with an IV30 of 36.44 up 8 points and an HV10 of 11.20 is seeing heavy out of the money call action today. ?Two large blocks of the March 30 calls were purchased for $.25. ?The first block was 15,000 for $.25 then 20 minutes later an additional 11,500 calls went up at the same price. Between then a few calls were bought for between $.15-$.25 as well. ?
- On the day there have been over 24,800 of these calls purchased against open interest of 161 calls, so this is opening activity. ?
- Mattel?s ADV is usually only about 5,000 contracts and has open interest of about 109k contract ?so this trade is sizable at roughly 5X ADV.
- This appears to be a customer taking an outright bet on MAT rallying from $26 to well above $30. ?The customer needs a strong move over the next month for this trade to be successful. ?While it could be a hedge against a short position, this appears to be an outright bullish bet due to the lack of a corresponding stock leg.
- This trade should be considered aggressively bullish volatility and the underlying.