KONG - Huge Opening Call Buyer

Discussion in 'Trading' started by livevol_ophir, Dec 30, 2009.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    The company averages 437 option contracts a day - already nearly 7,000 have traded just an hour into the day. 6,800+ have been calls - a 253:1 call to put ratio.

    The Feb 12.5 calls are the action. Over 6,700 have been purchased on essentially no open interest (OI) - these are opening order purchases.

    Vol is up on call purchases - the skew is changing shape from the classic volatility smile (smirk) to an upward curving smile. The demand for the calls is going up --> that means vol is going up. This is "irregular" but not "uncommon" when one line continues to trade on the offer.

    You can see details, trades, charts, prices on my blog: