The customer is betting that AMD is not going to move very far away from its 2.5 point strike.?
Advanced Micro Devices Inc. (AMD) is trading 2.44, down .12, saw a large call sell tied to stock.? AMD has an IV30 of75%, an HV10 of 50%, an ADV of 18,000 contracts and open interest of 985k. AMD saw a customer buy stock and sell the Jan 2.5 calls at .19.? The customer sold the calls 15,000 and bought stock on a 50 delta for 2.49.?
This trade is essentially a short straddle.? The customer is betting that AMD is not going to move very far away from its 2.5 point strike.? The customer clearly thinks that the IV of the Jan 2.5 strikes is too high relative to how much it is moving.
This trade should be considered neutral the stock and aggressively bearish and volatility.