I am not sure whether they are sold or bought to open but someone is expecting big volatility coming up next earning.
1) There is a buyer regardless of what the seller is doing.... naked or covered.
2) The question is who BOUGHT more than 30,000 calls at a $4 strike that expires next month?
3) I think that somebody bought the calls, and financed it by selling the puts....
That is what I would do....
Then I would follow it up with more accumulation over the next 6 weeks, before the GAP up after the CC guidance for Q3.
I just saw a report that contradicted my claim and it says that this is a short straddle where traders are expecting low volatility.
Right on the $$$. Short straddle is my guess as well. July2013 expires before the earning too.
took a look, that is the bet but volitility is up, he either wins big or loses big with that straddle. Personally I expect a climb until first week of july then we see/ start hearing about the earnings report and things get wild.
gonna be a wild ride to the ER
I believe so. Short interest also went up fom 92 million mid May to 96 million end of May. If the stock price rises due to for example good news before ER, that CAN trigger a short squeeze.