Paper sold 7500 XLP June 56 calls and bought 7500 Sep 58 calls, rolling ?out and up? on a set of long calls.?
Consumer Staples Select Sector SPDR, which is currently trading at 55.82 (up .10) with an IV30 of 10.62 and an HV10 of 4.43, saw a large call roll trade earlier today.? A customer sold 7500 of the June 56 calls at .30 then against it bought 7500 of the Sep 58 calls for .35, rolling ?out and up? on a set of long calls.? The June calls are a close of a long call position, the September 58s are opening based on open interest.
This appears to be a long call holder that felt the options were running ?short on time? and did not want to see the calls go worthless. Instead, the customer paid .05 to gain 4 months of time giving up some near term price exposure. The trader apparently thinks little is to happen between now and June expiration but that there will be some movement afterward.
This trade should be considered bearish realized volatility but bullish long term implied and the underlying.