Today, CY Feb 8 calls traded 8,000 times tied to stock, and more interestingly, a call sweeper bought over 10,000 of the March 9 calls paying .80.?
Cypress Semiconductor Corp., which was trading earlier at 8.85, down .35, has an IV30 of 56 and an HV10 of 31.2, and is seeing lots of call action today.? In two trades traders were buyers of calls.? The Feb 8 calls traded tied to stock 8,000 times, and more interest laying a call sweeper bought over 10,000 of the March 9 calls paying .80.? The ADV of CY is 6500 and the OI is 250k, thus a call sweep of this size is significant.
The customer buying the March calls clearly things that CY is going to move higher between now and March expiration.? The traders are hoping CY can break 10.00 a share between now and March Ex.
This trade should be considered bullish the underlying and aggressively bullish the volatility in the name.