In the second installment of today?s unusual options trading activity, savvy trader hits a home run in RDEN, aggressive buy in GNRC, and call buyers in HOV.
Puts trade in RDEN- very savvy put close knocked out of the park
Shares of Elizabeth Arden, Inc. (RDEN) are down .465 to 14.95 today.? RDEN is making a 52 week low.
Today paper traded 1500 RDEN Sep 20 puts for 5.10 today. ?
- ADV is 644 contracts.?
- OI is 2256 contracts.
Volume went up in 1 large block.? The puts traded for .02 over parity which makes them a close.? RDEN had tough earnings results with the stock making a 52 week low today.? The put trader is using this time to take profits.? There is some decent size trading on the Sep 15 straddle with the IV in today but still well elevated.
- 30-day implied volatility is 51%.??
- 10-day implied volatility is 31%.?
- 30 day implied volatility is trading above the 10-day realized volatility.
Elizabeth Arden, Inc. is a beauty products company with a range of portfolio of fragrance, skin care and cosmetics brands.
Calls trade in GNRC- this could be an aggressive call buy
Shares of Generac Holdings Inc. (GNRC) are up .80 to 47.09 today.? GNRC is in the middle of the 52 week range.
Today paper traded 9080 GNRC Nov 55 calls for 1.00.?
- ADV is 999 contracts.?
- OI is 289 contracts.
Volume went up in one large block on the PHLX.? Prior to the $1 kind the calls traded .90 lifting the offer.? These were most likely the customer lifting cheaper calls on other floors and then making the final purchase. IV is up in NOV just slightly today.? This customer is looking for a bid run in the stock.
- 30-day implied volatility is 27%.??
- 10-day implied volatility is 17%.?
- 30-day implied volatility is trading above the 10-day realized volatility
Generac Holdings Inc. (Generac) is a designer and manufacturer of a range of generators and other engine powered products for the residential, light commercial, industrial and construction markets.
Call buyers jump in for HOV- call buyers on high open interest
Shares of Hovnanian Enterprises Inc. (HOV) are up .09 to 4.31 today. ?HOV is near the low end of the 52 week range.
Today paper traded 1204 HOV Jan 5 calls for .30.?
- ADV is 2743 contracts.?
- OI is 15967 contracts.
Volume went up in 1 large block.? Paper did trade over 8000 contracts with some of the early trade going through a posted .25 offer.? If this were buy write closing it is very early in the cycle to give up that much of a gain so it is more likely an opening transaction.? The housing news was good this morning and the buyer was banking on more of a rally.? Jan vol. is holding firm with call sellers coming in to hit the standing .30 bid.
- 30-day implied volatility is 138%.??
- 10-day implied volatility is 283%.?
- 30-day implied volatility is trading below the 10-day realized volatility
Hovnanian Enterprises, Inc. (Hovnanian) designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, mid-rise condominiums, urban infill and active adult homes in planned residential developments.