GT, a?stock that has had nothing but bearish movement the last few weeks, is seeing call action today.
Noble Energy Bears on a Roll
NBL is currently trading 57.05 a vol of 39%.? Average daily volume in this name is 2338 contracts, but as of this writing, today the total is already over 28,000. A a trader that was long the Jan 2015 65 puts about 8,000 times sold out of the position, and took a nice profit, that was then used to roll down and lever up the bet that NBL is going to keep dropping. So far the trader has on the day bought at least 16,000 contracts between 2.40-2.5.? It appears there is some piggy backing of this trader as well after the fact.
This trade is certainly bearish and appears to be a straight directional bet that the underlying is going to keep dropping.? The trader is bearish NBL and bullish NBL IV.?? Traders looking to piggy back could consider the Nov Jan 55 put spread for 1.15
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Mildly Bullish Outlook in COH
Coach was trading 34.60 with a vol of 40.31 when a trader sold about 12,000 of the May 36 calls at 2.50.? This appears to be some sort of legged buy-write trade where the trade already owns the stock and is selling calls against his or her position to create income.? The trader may be trying to take advantage of IV being higher ahead of earnings which come up later in the month.
This trade should be considered mildly bullish the underlying as the trader is betting there will not be a severe drop in the underlying and that it will creep higher between now and May expiration.? This could be another sign that maybe the worst is over for COH.
Big Call Purchase in Goodyear Tire
A stock that has had nothing but bearish movement the last few weeks is seeing call action today.? Trading 20.06 with an IV of 44.50 and an ADV of 4600 contracts a trader has bought and is bidding for the April 22 calls.? So far the trader has bought over 10,000 of the April 22 calls paying 1.25.? The trader is still bid.
On its surface this appears to be a bullish trade.? The trader is betting that the selloff in GT will be over and the stock will recover by next spring. The trader should be considered aggressively bullish both IV and the underlying.
Traders looking to piggy back could consider selling a put spread in GT around the January time frame.