NXY - Risk Reversal and Calls

Discussion in 'Trading' started by livevol_ophir, Jan 11, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    The company has traded over 17,000 options today in the first three hours on total daily average option volume of 712.

    The day's biggest trade is a sale of the Mar 30/20 risk reversal (buy calls/ sell puts) @ 0.16 net. The OI on both lines is substantially smaller than the trade sizes - these are opening positions. Someone is collecting 0.16 to get super long NXY if it goes through $30.

    The next largest trade was a purchase of the Feb 25 calls - ~500 times total. Both of these trades are large opening bullish bets relative to average option volume.

    The stock chart illustrates that the price has bounced around these levels for a number of months with no strong directional move.

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