Dollar General Corp. (DG) was trading at 57.55 when a customer executed what appears to be a call stupid.? The customer bought the nov 65 calls for 1.05 about 5,000 times then the customer bought the Jan 75 calls for .55 a contract.? Additionally, a customer also bought the Nov 50/60 strangle 1500.00 times.?
The net of all the trades points toward a likely uptick in volatility, with the market bias set up as bullish the underlying name.? I would view these trades as extremely bullish.? This is a trend that has begun with some bullish paper trading yesterday as well.
Traders looking to take advantage of flow should look at buying the 55?s and selling some of the out of the money calls as skew has flattened with all of the bullish flow.