In 1 print, paper sold 4,000 FDC Oct 13 calls at .90.? This was followed up by several hundred more of these calls trading varying prices throughout the day.
First Data Corp., trading 13.092 (up .62), is on the heels of a great earnings report has an IV30 of 37.4 and an HV10 of 34%.? The stock, with an OI of 39,000 contracts and an ADV of 1100, saw a customer blast the Oct 13 calls.? A customer sold in one print 4,000 of the Oct 13 calls at .90.? This was followed up by several hundred more of these calls trading varying prices throughout the day.
This appears to be a call overwriter that is long the stock. The trader is looking to take advantage of this bounce but does not seem to think the FDC is going to be rallying above 14.00 between now and October expiration.? The customer would yield a healthy 7% yield if he or she is able to collect the entire premium on these calls and FDC sits.? Alternatively these calls lower the cost of ownership to the stock holder.
This trade is mildly bearish FDC and aggressively bearish FDC volatility.