Traders sold 11,500 PBR March 4 calls, bought 38,800 PBR March 4.5 calls and bought 59,000 PBR March 5 calls.
Petroleo Brasileiro SA, trading at 3.42 (up .22) with an IV30 of 88.25 and an HV10 of 89.05%, saw call flow today.? The stock, with an ADV of 31,000 contracts and an OI of 1.45 million contracts, saw a strip of calls trade.? In a series of trades (tied to synthetic stock) traders sold 11,500 of the March 4 calls at .17, bought 38,800 of the March 4.5 calls and bought 59,000 of the March 5 calls for .06.? All of this paper was opening as there is currently little open interest in March.
This is likely a trader that thinks if PBR is going to move its going to move.? He or she is using the March 4 calls to finance call purchases at the 4.5 and 5 strike.? If the underlying rallies a little, he or she has issues.? However if the underlying runs higher quickly this trader is in a position to clean up.
Trade should be considered bullish the underlying and extremely bullish volatility.