What kind of trade is this?

Discussion in 'Options' started by arturo100, Aug 8, 2024.

  1. What kind of play is the following one made yesterday on verge of WMS earnings? Three big (1500 pieces). simultaneous trades were placed on the near expiration Calls with strike 150, 165 and 170:

    WMS2416H150_0.txt:1 2024-08-07 10:31:30 8.75 1500 1500 7.7 9 164756070 C 17 A4
    WMS2416H165_0.txt:1 2024-08-07 10:31:30 2.5 1500 1500 0.6 3.3 164756071 C 17 A4
    WMS2416H170_0.txt:1 2024-08-07 10:31:30 1.5 1500 1500 0.65 3.6 164756069 C 17 A4
     
  2. I forgot to mention that, as sometimes happens with shopped trades, it is not easy to spot the trade direction from the closeness to the bid or the ask.
     
  3. My guess would be a Butterfly ---- except the guts should be 2x the contracts as the wings.
     
  4. Thanks for your answer. I agree with you that it could be a butterfly, except for the different number of contracts of the central leg you mentioned. On the other hand, I am seeing recently several combos like this, i.e., 3 options with the same number of contacts. I was wondering if this has something to do with the opening of actively quoted complex orders at CBOE, mentioned by ajacobson in one of his recent posts.

    https://www.elitetrader.com/et/thre...complex-orders-on-cboe-global-markets.379908/