This morning, one trader has been making multiple big trades in what appears to be the following spread for a debit of 0.49:
Long Sep21, 16 call
Short Sep21, 21 call
Short Sep21, 13 put
If held to exp, VIX would have to be below 12.51 or above 21.49 to show a profit.
10,500 of the Dec 2016 20/27 call spreads were bought for 1.20
1,000 of the Jan 2018 20/30 call spreads were bought for 2.48
At 1:45pm, over 22k of the Dec 20 calls have traded
One trader bought 399 of the Jan 2018, 90/130 call spreads for a debit of 24.65
He might have done better with the Jan 2018, 110/120 call spread for a debit of around 6.10
This would provide around the same profit potential but with a lower target price.
At 3:35p, for 0.48? Interesting trade, especially the number of trades chosen.
If you add up the total cost of the call and put for each straddle, the price of GLD would have to be at least that much above or below 130 in order to show a profit. The MaxPain today for July15 expiration for GLD is 124. This will provide a downward bias to the price.
20,500 of the Jan 2017, 22 calls traded for 1.20
666 of the Jul 22, 17.5 calls traded for 0.60
666 of the Jul 22, 17.5 calls traded for 0.65
No big spread trades today
One trader initially bought 15,000 of the July15, 130 call/put straddles
Looks like the trader subsequently bought 5,000 more of these straddles
I just tried to put in a buy order for some UVXY adjusted options as a test in my Fidelity account but was blocked from doing so.
This message came up:
"This option security is restricted from online opening trades or restricted to closing trades
There are no restrictions for buying or selling the regular UVXY options in my account by online trading. It appears the brokers are making it more difficult to trade these adjusted options.
Hilary may have a way out of this. When the Secret Service is assigned to protect someone, it is not only from physical attacks, but also from cyber attacks. Since she is always under their protection, she most likely may have asked some of the agents advice about her personal computers. Perhaps even about the best way to prevent cyber and virus attacks. They may not have set up her server, but she could always argue that they were protected to some degree by the agents, thereby making them secure.
Are you sure you want to be holding adjusted options after the reverse split?
Take a look at the adjusted options for Jan2017. There are essentially no bids for these options.
Are you saying they were sell-to-open trades? The OI has now risen to 3342. What do you think the trader's intent was for this trade?
Take a look at the July 11.5 / 12 call spread which you might be able to buy for around 0.13
This would give you a potential 3X profit.
The July08, 28 calls are going for 0.01/0.05 If the market stays flat for a week, your July15 calls will become nearly worthless. The spread may have a better chance of success. Perhaps, try both strategies.
There was some significant activity today in the Jan2018, 1.00 calls. I am guessing today's volume was a sell to close rather than a buy to open. Since the ATM time premium for a Jan2018 call is around 6.00, there is probably an advantage to owning a DITM call rather than shares.
If this acquisition does go through, the time premium portion of the options would be wiped out. This is assuming that the options will not be converted to adjusted options. Is anyone considering shorting OTM SCTY options?
"Apple shares could fall further as they are set to lose their weighting and be reclassified in the annual reconstitution of the widely followed Russell indexes, reports Reuters."
"When all is said and done, about $1.3 billion more will be sold in Apple shares at the market close on Friday, when the reconstitution of the Russell indexes takes effect, according to an analysis by Credit Suisse."