On the day, and in small blocks, customers have bought over 10,500 XBI June 56 calls paying up to 1.45
SPDR S&P 500 Biotech ETF, trading 53.31 with an IV30 of 41.50 and an HV10 of 44.75, is seeing bullish call action today.? The ETF, with an ADV of 22,000 and OI of 511,000 contracts, saw a call ?sweeper? on the June 56 strike.? On the day, and in small blocks, customers have bought over 10,500 of the June 56 calls paying up to 1.45.? With an open interest of just 1,100 this is 100% opening call buying.
This appears to be one or a few customers that think the recent slide in biotech?s could be over, and XBI might pop over the next few weeks above 56 and maybe toward 60 dollars a share.? This would represent a pop of over 5% higher from here, thus there is some degree of movement expected in just under a months? time.
This trade is aggressively bullish volatility and the underlying.