Both of these trades are a bet on SWN moving higher between now and their expirations
Southwestern Energy (SWN), which is currently trading at 5.31 with an IV30 of 107 and an HV10 of 79, is seeing bullish call spreads trade.? SWN has an ADV of 7200 contracts and open interest of 300k contracts. Today a trader executed two call spreads in which they bought 2500 of the Jan 6 calls for .50 and sold 2500 of the Jan 8 calls at .13 executing the call spread for .37.? This one might have been a roll down as there is good OI on the Jan 8 calls.? In the March contracts, it?s likely the same customer bought 4000 of the March 6 calls paying between .97-.99 and selling the March 100 calls at between .21 and .32.? Net the customer bought just over 4,000 of the March 6/10 call spreads for up to .77 a spread.
Both of these trades are a bet on SWN moving higher between now and their expirations.? Both seem to be a bet on SWN turning around in the near and medium term with a target of at least 7 bucks a share.? I
These traders should be considered bullish the underlying and mildly bullish volatility as some of the Vega of the 6 calls was laid off on the 8 and 10 strikes respectively.