On the day, paper sold over 8700 PAGP July 30 calls from as high as .45 down to .40.
Plains Group Holdings LP, trading 28.14 (down .16) with an IV30 of 23.80, down 1.15% and an HV10 of 15.02, is seeing large call sellers across the board today, the largest block being the July 30 calls.? The stock with an ADV of 1105 and an OI of 37,461 has seen over 13,200 calls trade today, most of them sales.? On the day customer have sold over 8700 of the July 30 calls from as high as .45 down to .40,? based on the open interest these are opening call sales.
These calls could be call overwrites against long positions.? If a trader sells the July 30 calls at .40 and is long the stock, the customer would produce a yield on the calls of 1.25% over the next 2 months an annualized yield of about 8%.? If the stock rallies the customer would be selling his or her stock at 30.40, 2.30 higher than the current price, a gain of almost 10% from the current price.
This trade should be considered neutral the stock and aggressively bearish volatility.