Unusual Options Trading Activity: Long term options rolling in BAC, calls trade in VSI and it looks like an overwriter in KMI.
Calls Roll In BAC- Long Term Options Rolling
Shares of BankAmericaCorp (BAC) are trading up 11 to 16.46 today. ?BAC is near the top of the 52 week range.
Paper traded 19901 BAC Jan 2015/2016 17 call spreads for 1.03.
- The ADV is 259k.
- The OI is over 300k per strike.
The volume went up in two giant blocks. This trade is a continual roll of volume where the trader is trying to maintain a long position but is pushing the duration out for another year. The trader here is taking advantage of the low volatility to roll out.
- IV 30 is trading for 23.
- HV10 is trading for 18.
- IV 30 is trading over the HV 10.
Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company.
Calls Trade In VSI – Paper Paying Up For Calls
Shares of Vitamin Shoppe Inc (VSI) are up 1.0 to 41.97. VSI is in the middle of the 52 week range.
Paper traded 591 VSI Oct 45 calls for .50 and .55.
- The ADV is 225.
- The OI is 11 contracts.
The volume went up in 2 blocks. The trader is buying calls here lifting the offer in a .35-.55 market. Extra volume pushed the trade on the strike to 754. This is significant volume in a low volume stock with very low implied volatility.
- IV 30 is trading for 31.
- HV10 is trading for 26.
- IV 30 is trading over the HV 10.
Vitamin Shoppe, Inc. is a specialty retailer and direct marketer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products.
? Big Call Trades In KMI- Looks Like An Overwriter
Shares of Kinder Morgan Inc (KMI) are down .10 to 38.31 today. KMI is in the upper end of 52 week range.
Paper traded 19000 KMI Oct 40 calls at .31.
- The ADV is 25672.
- The OI is 13846.
The volume went up in 2 giant blocks. Trade on this strike is consistent with a call writer. Part of this volume traded through the bid. Yield is around 1% per month on a high dividend stock to generate a very nice longer term yield.
- IV 30 is trading for 20.
- HV10 is trading for 14.
- IV 30 is trading over the HV 10.
Kinder Morgan, Inc. (KMI) owns and manages a diversified portfolio of energy transportation and storage assets.