Paper paid .36 for 20,000 DOW Sep-Sep30 54 call calendar spreads.
Dow Chemical, trading 53.71 with an IV30 of 18.40 and an HV10 of 16.85, saw a call calendar trade.? The stock, with an ADV of 10,500 and OI of 410,000 contracts, saw a customer sell 20,000 of the Sep 54 calls at .68. They bought 20,000 of the Sep 30 54 calls for .94 against it.? Net, the customer paid .36 for the Sep-Sep30 54 call calendar.?? Based on the open interest in the strikes this opening on both sides of the trade.
This appears to be a customer that thinks Dow chemical might creep higher over the next month but not explode higher.? The customer appears to thing that over the 3 weeks DOW will creep toward 54 dollars, a gain of about .5%.? Once regular Sep rolls off the customer will be left long the Sep 30 calls for cheap, or he or she may flip out of the whole positions.
This trade is mildly bullish in the underlying and bullish vol.