Paper sold 17245 and 4980 AMAT July 25 calls at .23.
Applied Materials Inc., trading 23.69 with an n IV30 of 27.70 down .9 and an HV10 of 11.12, saw a major call overwrite trade today.? The stock, which has an ADV of 11,500 and an OI of 295,000 contracts saw a trader sell size in the July 25 calls.? Paper sold 17245 and 4980 of the July 25 calls at .23, on the day 25,480 have traded so far.? While there is large open interest on the strike this is likely an open against an existing stock position.
The customer is hoping that the underlying is going to rally between now and July to 25 bucks a share but not much above as above 25.23 the trader would lose control of his or her stock position.? The customer is likely selling these as an income play against a low vol stock like AMAT.?
The trade is mildly bullish the underlying and bearish volatility.