A trader who was short ACHN May 10 calls closed 5473 of them for .01 & rolled the calls back into a laddered call position.
Overwrite against Stock in ACHN
Earlier today, Achillion Pharmaceuticals Inc. was trading at 9.59 with an IV of 57.80.? At that time, a trader who was short the May 10 calls closed 5473 of them for .01. Then, he or she rolled the calls back into a laddered call position. The trader is now short 2736 of the June 10 calls and 2737 of the Jun 11 calls.
This trade appears to be a call overwrite against a stock portfolio.? In addition, the trader has adjusted the position so that is somewhat more bullish that it was over the May cycle.? The trader seems to think the stock could end up somewhere north 10 dollars next month.?
This trade should be considered bearish volatility in ACHN and mildly bullish the underlying.
Bullish Calls in FTR
Frontier communication Corp. was trading at 5.55 earlier today with an IV of 34.09 when traders started buying the August 6 calls hand over fist.? In total over 20,000 calls have traded 10,000 for .15 and another 10,000 for .20.? Two big trades have been tied up to some stock.? But additionally, lots of these calls are trading electronically outright for .18, .19 and .20.
This appears to be a customer taking a bullish call position on FTR.? While this could be a hedge against a short position, based on the follow up flow of bullish activity it is likely this is a bull trade.? The trader is hoping the underlying moves above 6.20 between now and august.
This trade should be considered aggressively bullish both the underlying and volatility