YELP has earnings coming up at the end of the month, and traders are buying the up the August 34 and 38 calls.
Yelp Inc., trading 30.40 (up .58) with an IV30 of 74.40 and an HV10 of 54.20, has an ADV of 6600.? The stock, with open interest of 99,900 contracts, has seen over 15,000 calls trade almost all of which are in August.? The stock has earnings coming up at the end of the month, and traders are buying the up the August 34 and 38 calls buying over 6,000 of the 34 calls, the largest block being 5600 for 1.25 and 5000 of the August 38 calls paying .55.? While there is open interest of 6,000 of the Aug 34?s we believe that the trades today are additive to the strike not closing.? The 38 calls are certainly opening.
This appears to be customers placing large call bets that YELP is going to perform well either ahead of earnings or out of earnings which will occur before these options expire.? The customer is hoping that the stock rallies between 12 and 25% between now and august expiration
These call buys are aggressively bullish vol and bullish the underlying.