Vodafone trade looks for big move

optionMONSTER

A large trader is apparently betting on a big move up or down in shares of Vodafone.

optionMONSTER systems show that a print of 4,000 August 32 puts traded for $0.24, dominating today's option action in the name and topping its total daily average. The volume is also above the strike's previous open interest of 1,174 contracts, so this is clearly a new position.

Just afterward, a block of 92,000 shares of VOD changed hands for $33.40. Combined with the puts, this creates an overall delta-neutral strategy that is focused on volatility , not direction. Given the option prices and the stock action, the trade appears to be a long-volatility play that is looking for shares to move sharply higher or lower by expiration a month from tomorrow. (See our Education section)

VOD is down 1.13 percent to $33.17 in midday trading. The U.K.-based telecommunications carrier has been bouncing between $32 and $34 for more than a month.


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