Paper has been selling EGO July 5 calls at .45 all day.
Eldorado Gold Corp., trading 4.75 (up .19) with an IV30 of 73.72 and an HV10, of 75 has earnings today after the close.? The stock, with ADV of 3200 and an OI of 142,300 contracts, is seeing heavy July 5 call action.? Customers have been selling the July 5 calls at .45. On the day over 14,400 of these have traded with the biggest block being 8906 on the CBOE.? Open interest on that strike is high at over 39000 contracts.
This could be one of two things; the calls are at a 2 month high thus any purchase of these calls would be profitable.? A customer could be profit taking.? Alternatively a long holder of the stock could be using earnings and the pop in today?s price to sell premium against his or her position.? Either way the customer does not see much more than 15% upside between now and July expiration.
This trade should be considered bearish volatitly and bearish EGO.