Paper bought 10,000 UAL Jan 2017 52.5 calls & sold Jan 2017 55 calls for a net debit of .72 for the 2.5 point vertical.
United Continental Holding Inc., trading 47.52 (down .08) with an IV30 of 30.93 and an HV10 of 15%, saw a call spread trade today.? The stock, with an ADV of 13,600 and an open interest of 248,005 contracts, had a customer buy 10,000 of the Jan 2017 52.5 calls for 2.24 and then sell the Jan 2017 55 calls at 1.52.? Net, the customer the trader paid .72 for the 2.5 point vertical.? Based on the open interest, the customer is closing the Jan 2017 55?s and opening the Jan 2017 52.5 calls.
This is likely a trader who was long the 55?s looking to rebalance his or her delta.? By closing the 55s and opening the 52.5s, the trader is picking up 80,000 deltas of exposure to UAL.? They are hoping the stock rebounds between now and January.
This trade is bullish both the underling and volatility.