For the second time in as many days, traders have put up huge volume on the JNK September 35 strike. ?
SPDR Barclays Capital High Yield Bond ETF, trading 34.94 (up .07) with an IV30 10.72 and an HV10 of 5.75, is seeing bullish call action.? For the second time in as many days, traders have put up huge volume on the September 35 strike.? In the ETF with an with an ADV of 3400 and OI of 183,000 traders bought 35,000 of the Sep 35 calls paying .59 tied up to stock.
This is likely a play on the JNK moving away from 35, either higher or lower.? The traders of these calls, with a slight bias higher are hoping JNK moves away from 35.? Alternatively this could be a stock replacement with the trader selling JNK ETF?s and replacing with the calls.? Regardless the trader is looking for movement.
This trade should be considered mildly bullish JNK and aggressively bullish JNK volatile.