Considering the ADV in DAN is about 700 contracts a day, this traders has a serious axe to grind.

Pushing up IV in Dana Holding Corp. (DAN)


Today Dana (DAN) was trading at 17.67 when a trader bought 50,000 of the DAN November 18 calls tied up to stock at varying levels– mostly between .80 and .90 cents a contract.  With all of the buying he or she has pushed IV in DAN up to 46.50 a rise of 6 points on the day.  Considering the ADV on this name is about 700 contracts a day, this traders has a serious axe to grind.

With the trades being tied to stock this trade is more of a play on IV than on direction, although it probably leans slightly bearish based. 

Continued Pressure in XLE



The XLE Select Sector SPDR is having a rough couple of months.  Oil is down, its stocks are getting crushed. The ETF trading 82.88 is seeing some put trading,  A customer traded a bearish put 1 by 2 in November, the customer appears to have bought 53,000 of the November 84 puts for 3.90 against selling 106,000 of the 80 puts at 2.30.  This spread is a net credit of .70 to the trader.

My guess this is a trader that thinks there could be some continued pressure for the time being, but if he or she is wrong they are more than happy to keep the .70 credit.  In the event the XLE keeps dropping the trader would take delivery at a net price of 75.30 which would put the ETF at a major point of resistance from a technical stand point.

I like this trade.