HOTT - Call Buyer

Discussion in 'Trading' started by livevol_ophir, Jan 21, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    The company has traded over 5,418 options today on total daily average option volume of 223. The Company Tab snapshot is included in the article.

    Essentially the entire volume was a 2,500 May 5/7.5 call stupid purchase for 1.50 + 0.25 = 1.75. The day's biggest trades and Option Tab snapshots are included in the article.

    Note the open interest (OI) is much lower than the trade volume for both lines - these are opening trades.

    Finally the Charts Tab (included in the article) illustrates the strong downward move over the lasy few months including a gap down after earnings. You can also see how large this option volume is relative to the average.

    You can see details, trades, prices, charts on the blog here:
  2. rew


    Did I get that right -- someone bought both $5 and $7.50 calls, not 5/7.5 call spreads? It's like he could make up his mind - ITM or OTM calls?
  3. livevol_ophir

    livevol_ophir ET Sponsor

    Yep. 5 and 7.5 call purchases. It's called a "stupid" if the calls or puts are both bought or sold (i.e not spread).