Paper is betting that SRCL could rally above 108.30 between now and August expiration.
Stericycle, trading 97.62 (down .37) with an IV30 of 26.40 and an HV10 of 23.2%, is seeing call action today.? The stock with an ADV of 413 and an open interest of 11,000 contracts has seen over 10,800 calls trade mostly in August. A trader bought the August 105 calls for 3.20 all the way up to 3.40 a contract with the biggest blocks being 3.30 totally 5,500 contracts.? On the day over 7,000 of the August 105 calls have trade.
This appears to be an outright call buy (although there could be stock elsewhere).? The traders are betting that between now and August expiration SRCL could rally above 108.30 which would be a 10% rally in the underlying.? This was a level the stock was trading well above as recently as April when earnings went poorly for the company.
This trade appears to be aggressively bullish the underlying and volatility in the name.