Paper bought 25,000 P Dec 18 calls for .45 & sold 25,000 Dec 20 calls at .17.
Pandora Media Inc., trading 13.61 with an IV30 of 50.59 with an HV10 of 42.75, is seeing heavy call action today.? The stock, with an ADV of 9300 and an OI of 320,000 contracts, saw a large call spread trade in December.? The customer bought 25,000 of the Dec 18 calls paying .45 against selling 25,000 of the Dec 20 calls at .17, net buying the Dec 18/20 call spread for .28.? This spread printed additionally times later on in the day trading as low at .25 but mostly around the .28 price of the large block trade.?? On the day a total of 27380 of these spreads have traded.
This appears to be customer that think P might move higher between now and December.? The top of the CS would represent a 50% increase in the stock price and this spread could be a play out on some sort of buyout.? Based on the OI on the strike this is an opening trade.
This trade is bullish P and P volatility.