Trade bets on New York Times move
A large volatility trader is looking for a big move in shares of the New York Times.
NYT finished the day at $6.77, down fractionally on the day. It tested support at $6.50 for the first two weeks of March after trending down from $8 in January.
The option volume in NYT topped 15,300 contracts yesterday, compared to a daily average of just 72 in the last month. A block of 15,000 October 7 calls was bought for the ask price of $0.85 on wide spread. The previous open interest was just 46, so this was a new opening position.
We would usually assume that the call buying is quite bullish, but immediately after the calls were bought a single block of 785,000 shares was sold. This would make the overall position delta-neutral , meaning that it could profit if NYT moves sharply higher or lower. (See our Education section)
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