FWIW, interesting large flow today in stocks... Dec9 Eurostoxx 2000/1600/1200 put fly, 180k lots got bot for 77 ticks (ref 2010).
I probably would have heard of the original trade, if this were an unwind. Also, that's what the broker chatter is suggesting...
SO we dont really know if the initiation of the trade was on the buy side or the sell side regardless of whether its opening or closing. They may have legged into it opening too you know
Well, this trade was paper buying the fly, so I am pretty sure it was the buy side. Also, with a structure like that it's very uncommon that this would be a part of something bigger or an unwind of an existing trade. Flies like that, where you attempt to pin the strike, are normally trades you buy and hold to maturity. Anyways, that's just my experience, so take with a grain of salt.
You can never be 100% certain about these things, but in this situation, you can be 99% certain that this is paper opening a long fly. No custy's sell the fly, especially one as big as this, and, as he said, this does not really go w/ other positions too easily (could be a hedge against a big timespread, but I am betting for the pin as our author is). Interesting sho. You should post these more often! Thanks mate.
Martin, I was just sort of playing devils advocate with you. I agree that paper probably bot that fly. They could have a plethora of other things going on vs. that but I totally agree with your assessment.
assuming it was a paper buy to open and not buy to close, this could be a a cheap hedge against a long 180k lots of Eurostoxx Futures.
Here's another 'un for ya, folks... Not as juicy, as it's the front month. In Apr09 EuroStoxx someone bot 100k of the 20/19/18/17 put condors.