8,000 GSK March 43 calls were sold at .65 tied to stock.
Glaxo Smith Kline, trading 42.08 with an IV30 of 26 and an HV10 of 22.80, had earnings this morning.? The stock, with an ADV of 3,800 contracts and OI of 90k, saw a trader sell 8,000 of the March 43 calls at .65 tied to stock.
This trader likely believes that despite today?s nice move, GSK may not make a significant leap higher between now and March expiation.? At the same time, he or she wants to participate if there are small amounts of upside.? The trader is hoping GSK moves toward 43, slowly by March 18.
This trade is mildly bullish the undelrying and bearish volatility in GSK.