AAPL
- AAPL is currently trading 98.90.
- A customer bought 8,500 of the AAPL Apr 117.14 calls for 2.28.
- Against that he or she sold the April 127.14 calls at 1.04 17,000 times.
- This creates a bullish long term 1 by 2 call spread for a net debit of .20.The trader is likely bullish the underlying in the long term as he or she will make the most money on a near 30% move higher. The trader has given his or herself a 7 month time frame for AAPL to rally.?
- In addition to the trade being a cheap play,? the trader was capturing a favorable vol skew by selling essentially even upside vol against the 117.14 purchase.
- This trade should be viewed as bullish the underlying and despite being short vega, actually quite long vol as AAPL will need to rally at least 20% in the next 7 months, quite the move for this underlying
DLTR
- DLTR is currently trading 55.70. A customer executed a bullish 1 by 2 call spread in January.
- The customer bought 7500 of the jan 57.5 calls expiring in 2015 for 1.89.
- Against that he or she sold 15,000 of the Jan 65 calls at .31.This appears to be a trader attempting to go long a call spread on the cheap by selling the 1 by 2.?
- As DLTR is currently in talks to buy FDO,? the trader is making a bet that DLTR combined with FDO will have bullish action over the next 3 months.
- I would consider this trade bullish the underlying and bearish implied volatility as the trader is hoping for a decent move but not a huge move.? Traders looking to piggy back might look at a trade buying the Jan 60 calls for around 1.15
YNDX
- Yandex is currently trading 31.36.
- A customer is buying up the October 34 calls in size.? So far the customer has a bought at least 12,000 of the Oct calls for .65 and .70.
- This trade appears to be an outright bullish bet on the underlying. As this is a Russian name it could be both company and geo-politcal in specific.? I would consider this trade extremely bullish the underlying and bullish near term volatility in YNDX based on the strike and duration.
- Traders looking to piggy back could buy the 32/34 call spread for .75.
DE
- John Deere & Company is currently trading 82.83.
- A customer is legging into the Oct 82.5/77.5 put spread at varying prices.? So far the customer has at least 5,000 spread on paying around 1.40.? The customer is trading across all the exchanges primarily electronically.
- This customer is likely bearish the name in the near term.? There has already been a large uptick in put activity in the last week in DE.? This could be related to either an earnings warning or some sort of cyclical sell off.
- Traders looking to piggy back this trade could consider buying the same spread as IV is cheap and the risk reward for this spread is favorable.