Over 20,000 of the GDP Mar 2.5 calls sold at .25 & 20,000 of the June 2.5 calls were bought for between .15 and a .10.
Long Time Spread in GDP
GDP, Good Rich Petroleum, currently trading at 2.44, is near a 52 week low.?? The IV of the stock is 127.75, with earnings coming up the week of Feb 19.?? Today a trader executed a long time spread at the 2.5 strike? The Trader sold over 20,000 of the GDP Mar 2.5 calls at .25 and bought 20,000 of the June 2.5 calls for between .15 and a .10.
This appears to be a near term play on nothing happening into earnings, followed by the stock rebounding in the second quarter.? My guess is the trader is trying to find a way to produce income while giving him or her inexpensive long exposure.? Traders looking to piggy back could sell the Mar 1.5 put at .15 or the 2 put at .30
Heavy LEAPS Action in BUD
Anheuser Busch InBev currently trading 121.27 with an IV30 of 22.65 is seeing heavy action on the Jan 2016 150 strike.? Traders appear to be selling the one year leap calls in size with 15,000 trading at 2.5 followed by multiple sweeps between 2.15 and 2.35 and another 2500 sold at 2.35.? All told just under 23,000 of these calls have traded
With how far OTM these calls our, this is? likely a long stock holder that is looking to produce some income against his or her stock position , but wants substantial upside if the stock rallies.? The trader would essentially be capped out at 152.5 if the stock runs.? Although from here that would be a nice 25% move.
Traders looking to piggy back could consider a put selling strategy that starting in February which expires before BUT announces earnings on the 26th.
Income Play in KO
Coca-Cola CO, currently trading 41.60 with an IV30 around 19.85, and earnings on 2/10, is seeing heavy put action today.? Traders have been selling the Mar 40 puts in size between .58 and .61 a contract with the two largest prints being 5000 at a price of .58 and 1500 at a price of .61
This appears to be an income play with a trader looking to sell increase IV in KO ahead of its earnings.? The trader is likely trying to harvest the premium from the KO puts should the stock stay above 40 and IV come in after earnings, and or is willing to take delivery of the stock for 39.40 which would be a 5% drop from here, a massive play.
Traders looing to piggy back might consider the Feb-Mar 40 put spread for .about .32 as a way to play the relatively higher IV in Feb vs the somewhat cheaper IV in march.? In addition it is slightly bearish.