REVIEW FROM 5/18 – ?Sep SBAC call spreads trade in size


Shares of SBA Communications Corp (SBA) were up 3.31 yesterday. SBAC is near the upper end of the 52 week range.

Paper traded 5900 SBAC Sep 150/155 call spreads for .67.

The ADV is 900 contracts.

The OI is 0 contracts.

The volume went up in 2 blocks on the ARCA marked spread. Over 10k spreads traded early in the day and the pricing looked buy. By the close yesterday the spread were in the money. There is 0 open interest so the trader is very bullish on these upside options.

IV 30 is trading for 21% HV10 is trading for 20%. IV 30 is trading above the HV 10.

SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications.

REVIEW – Good timing on stock since it rallied significantly after the trade. But the spread was closed for only a small gain. Shows the problem of buying a small delta spread.

Sep 150 OI remained open until 5/30 when stock closed at $138.

Sep 155 OI also closed same day with options at $1.50.

Paper closed the spread for $.80 – only a $.13 winner.