7000 ECA Oct 11/12 calls traded over Oct 9 puts in 3 blocks on the PHLX.?

ECA

Shares of Encana Corp (ECA) are up .33 to 10.44 today.? ECA is near the upper end of the 52 week range.

  • Paper traded 7000 ECA Oct 11/12 calls over Oct 9 puts for .20 and .15.?
  • The ADV is 7099.
  • The OI is 6061 on the Oct 11 calls and 12466 on the Oct 9 puts.

The volume 3 blocks on the PHLX.? This trade looks like a low cost, high reward ratio with a short put financing an upside call spread.? There is high open interest on the puts but most likely they are financing most of the calls spread as an opening trade.

  • IV 30 is trading for 59%.?
  • HV10 is trading for 47%.?
  • IV 30 is below the HV 10.

Encana Corp is a Canada-based energy producer, which is engaged in the business of exploration, development, production and marketing of natural gas, oil and natural gas liquids (NGLs).