Paper sold 10,400 VGK July 48 calls & bought 10,400 July 50 calls.
Vanguard FTSE Europe ETF, trading 49.71 (up 1.09) with an IV30 of 27.24 (down 5.85), and an HV10 of 29.70, saw a large block of bull call spreads trade. The ETF, with an OI of 67,000 contracts and ADV of 2,250, saw a customer execute a large block of call spreads that were likely a close and roll.? A customer sold 10,400 of the July 48 calls at 2.47 and 2.48 and bought 10,400 of the July 50 calls for 1.20.?? Based on open interest, the 48?s are a close and the 50?s are likely an open.
This is likely a customer that created a long bet on VGK as the Brexit vote fear was heating up in the July 48 calls, which are now 1.72 in the money.? With IV still high and these in the money, the customer appears to be putting money in the bank and then betting on VGK to keep rallying from here.
This trade is likely aggressively bullish VGK and VGK volatility.