Unusual Options Trading Activity in?Advanced Micro Devices, Inc. – AMD,?iShares Dow Jones US Real Estate (ETF) – IYR and?Applied Materials, Inc.- AMAT.
Advanced Micro Devices, Inc. – AMD
AMD is currently trading for 4.03 -? a vol of 47.30. A customer is betting that the stock is not going to be moving for the next few days.
A trader sold just over 15,000 of the Sep26 weekly puts at .10 and against it bought the October10 weekly 4 puts for .16. Next the trader bought the Sep26-Oct10 4 puts calendar for .06.
This is a play on the underlying sitting here and IV holding up in October. This should be considered neutral the stock, neutral realized vol and bullish implied volatility.
A customer sold the Oct 70/65 put spread 8300 times. The trader paid .18 for the .65 put and sold the 70 put at .66. Net the cost for the short put spread is a .48 credit.??
With the underlying trading 71.8, the trader is betting that the underlying is going to stay above 70 dollars a share between now and Oct expiration.
This trade should be considered mildly bullish the underlying and bearish volatility. Traders looking to piggy back could trade the Oct 73/74/75 bull butterfly
Applied Materials, Inc.- AMAT
AMAT is currently trading for 22.45.? A customer sold 20,000 of the Jan 22 calls collecting 1.73. He then bought 20,000 of the April 23 calls paying 1.78.
This appears to be a bull call roll for a small debit. The trader is taking off a Jan winner and rolling it up and back to April. He or she apparently thinks the stock may be done rallying between now and Jan, but will have more movement into the new year.
This trade should be considered bullish the name, and bearish near term vol and bullish long term vol.