Shares of BPZ Resources (BPZ) are up .20 to 2.03 today.? BPZ is at the low end of the 52-week range.
Today paper traded 2,000 BPZ Jun 3 calls over 1000 BPZ Jun 2 puts for a .19 debit.? ADV is 399 contracts.? The OI is 0 on the puts and 1085 on the calls.
The volume went up in two blocks, one each for the calls and puts.? Both trades went up mid-market with a slight bias to the buy call side.? The trade would make sense a skewed risk reversal, with the puts paying for part of the calls. ?If so, it is a very bullish trade.? A $2 hedge does not make much sense.
30-day implied volatility is 85%.? ?10-day implied volatility is 50%.? 30-day implied volatility is trading above the 10-day historical volatility.
BPZ Resources, Inc. (BPZ) is focused on the exploration, development and production of oil and natural gas in Peru and Ecuador.?