20k ODP July 7 calls & 2k ODP July 8 calls, known as a call stupid, traded earlier today.
Looking for a Higher Move in EBAY
Earlier today when eBay Inc. was up 2.15 trading at 57.41, a customer bought over 21,000 of the February 60 calls paying between 1.15 up to 1.48 a contract.? This appears to be untied and has driven IV on the strike over 1 point.
This customer is making a bet that between now and February EBAY is going to make another move higher to over 60 dollars a share.? This should be considered aggressively bullish the underlying and bullish volatility in EBAY.
Traders looking to piggy back this trade could buy the 57.50-60 call spread for about a dollar as a way of being long without the extra IV exposure
Call Stupid Trades in ODP
Office Depot was trading 7.63, up .90 and had an IV of 55.73 earlier today.? A customer bought 20000 of the Jul 7 calls paying 1.65 calls and at the same time bought 2000 of the July 8 calls paying 1.15.This spread is called a call stupid and represents, if not related to a stock trade (which I do not see) an aggressively bullish play on the underlying.
The customer is betting that the underlying is going to make a strong move above 9.15 a share.? This should be viewed at a minimum as a strongly bullish play on volatility and likely a bullish play on the underlying as well.
Traders looking to piggy back could consider the ODP July-Jan 2016 calendar spread as a play on the underlying rallying and as a way to sell July premium which is trading at a relative premium to Jan
Collecting Income in TWX
Time Warner Inc. was trading at 84.01 today when customer rolled back a short put position.? The customer bought the Dec 80 puts paying .28 and sold the Jan 80 puts at .95 collecting a net payout of .67 on the spread
This appears to be a customer that is a put seller for income.? He or she might want to own the stock below 80 dollars a share. By selling puts waiting for the stock to fall below 80 the customer is able to collect income.
This trade should be considered bearish volatility in TWX and slightly bullish the name as the customer appears to want to own the name. Traders looking to piggy back could buy the Jan 82.5/85/87.5 butterfly for about .60.