The iShares iBoxx High-Yield Corporate Bond Fund is seeing call buying for the second session in a row, but today's trade appears to be focused on volatility rather than a particular direction.
optionMONSTER's Heat Seeker system shows that a trader bought 12,000 December 95 calls for their ask price of $0.75. This was clearly fresh buying, as the volume was almost 6 times the strike's open interest before the trade appeared.
Less than a minute later, 300,000 shares of the HYG were sold for $92.74. The combination of stock and options creates an overall position that is delta-neutral , meaning that the trader is looking for higher volatility and/or a big move up or down. (See our Education section)
The HYG continues to climb in midday trading but is just up fractionally to $92.80 after yesterday's big move higher. The junke-bond fund was down near support at $91 last week and at highs above $96 a month ago.
Yesterday the HYG drew bullish call buying at the September 94 strike.
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