Read this, if for no other reason, than this analogy: The stock, which has been treated much like a horse in a Godfather movie, is seeing a huge amount of call selling on the September .50 strikes.?
Horsehead Inc., ZINC, trading at .39 down .10 and an HV10 of 390%, had an active call seller today.? The stock, which has been treated much like a horse in a Godfather movie, is seeing a huge amount of call selling on the September .50 strikes.? Traders have sold 17,000 of the Sep .50 strike at .05 moving to kill these calls all day.?
Despite having 240 days to expire traders seem to feel pretty confident about selling these calls at .05.?? These could be done as an overwrite.? Against a stock position or even against a long bond position in the name.
This trade should be considered bearish ZINC vol and the underlying