NXST, which has an ADV of 330 contracts a day with an open interest of 7900 contracts, saw a 50,000 lot call spread trade.?
Nexstar Broadcasting Group, trading 56.23 up .59 with an IV30 of 45.5 and an HV10 of 50, saw a bull call spread trade.? The stock, which has an ADV of 330 contracts a day with an open interest of 7900 contracts, saw a 50,000 lot call spread trade.? A customer bought 5,000 of the Jan 60 calls for .60 and sold 5000 of the Jan 65 calls at .05. Based on the strike OI this was 100% an opening trade.?
Given the time to expiration and the strike selection this customer sees clear 10% upside in NXST between now and next Friday the 15th when these options expire.? He or she needs this NXST to be over 60.60 to profit from this trade in less than 8 trading days.? Frankly I question the need of the trader to sell the 65 calls at .05 seems like he or she could have just paid the extra .10 to buy the calls outright.
This trade should be considered aggressively bullish the underlying and volatility.