Paper sold 250,000 KMI Jan 2017 50 calls & bought 250,000 Jan 2017 60 calls for a net credit of .02.?
Kinder Morgan Inc., trading at 17.50 with an IV30 of 46.90 and an HV10 of 29.70, saw a closing call spread trade.? The stock, with an OI of 1,495,000 contracts and an ADV of 36,000, saw a customer close a 250,000 lot call spread.? A customer sold 250,000 of the Jan 2017 50 calls and bought 250,000 of the Jan 2017 60 calls for a net credit of .02.? Based on the OI of 400,000 on each strike this trade appears to be a customer throwing in the town on a long call spread.
The customer thought KMI was going to have a banner year, but apparently was wrong.? He or she caught a move, just in the opposite of the specific direction the customer was looking for.
This trade should be considered neutral vol and bearish KMI.