Paper sold 15,000 of the March 75 calls at .17 and bought 15,000 of the April 75 calls for .54
Time Warner Inc., trading 64.77 yesterday with an IV30 of 33.40 and an HV10 of 53.6, saw a customer trade a calendar spread.? The stock with an ADV of 14,700 and an OI of 405,000 contracts saw a customer trade 15,000 of the March-April 75 call spreads.? The customer sold 15,000 of the March 75 calls at .17 and bought 15,000 of the April 75 calls for .54.? Based on the open interest on the strikes these could be a close.? Although I would note that there has not been a calendar that traded in this size the other way traded in this name, so it could be an open or a close that others decided to open up on.
This trade benefits from a slow move higher in TWX toward 75 dollars a share and/or the belief that TWX IV is going to increase.? The customer is looking for a decent rally in the name. ?Alternatively this could be a roll of a long call position in March out to April.? Based on OI it is difficult to tell if this is an open or a close or a roll
This trade should be considered bullish the underlying and bullish volatility.