Unusual Options Trading Activity: Customer buying upside calls in VIX,? group of traders buying calls outright in SPLS, and a bullish play on AVNR.
The CBOE Volatility Index is currently trading 13.00%. A customer is buying upside calls today. Currently calls are trading at a ratio of 13 to 1, with the biggest trade being a buyer of the Oct 22 calls.
A trader bought 26,700 on splits paying .425. This was followed up buy a second purchase of 45,000 calls for .45. In total over 100,000 have traded on the strike today. The calls appear to be opening.
In order for these calls to work the trader would need the VIX to pop above 20%. However, any purchase like these calls is likely a hedge. I would rank this trade bullish IV and somewhat bullish VIX. This could also be a hedge on the Scottish election.
Staples – SPLS
Staples Inc. is trading for 12.75. A trader has bought about 12,900 of the Dec 14 calls collecting .30 and is now paying .35. This appears to be a group of traders buying these calls outright. It has the smell of some sort of news letter, and/or a block trade.??
Traders have run the vol up from 29 to 31. These are likely opening. There is also heavy volume on the 13 strike, likely in response to the buying at the 14 strike.
The traders are betting SPLS has more upside and is going to run higher. These calls are bullish the underlying and bullish SPLX volatility. Traders looking to piggy back could buy the 13/14 call spread for .40.
Avanir Pharmaceuticals (AVNR)
AVNR is trading for 6.80. The IV30 is now above 100%, up 10% today.
A trader bought 4476 of the Oct 8 calls on the offer paying .40. A total 8862 have traded today with the calls now quoting .50.-.55 with the .50 bid still there.
This appears to be a bullish play on the small pharm company. The trader is betting AVNR is going to make a quick move higher above 8 between now and Oct. I would consider this trader bullish the name and bullish IV.