Trade should be considered somewhat neutral volatility but near term bullish the underlying.
Ball Corporation (BLL) was trading 69.50, up 2.06. BLL has an IV 30 of 34.65 and an HV 10 of 23.5 BLL, which has an ADV of 650 contracts and an open interest of 68,750 contracts, saw a customer sell 9850 of the Feb 75 calls at 1.95 vs open interest of 9958.? Against it he or she bought the Feb 72.5 calls just over 8,000 times for 3.00.? This was tied to stock although there is not a large delta.
The trader appears to want to ramp up his or her delta in the near term and closer to the money, rather than being long further out of the money calls. This trade pays off better below 77 dollars a share in BLL, but worsens if the stock really takes off.
Trade should be considered somewhat neutral volatility but near term bullish the underlying.