VIAB May Call Spreads
Paper bought 5,000 VIAB May 45-50 call spreads for 1.05. The stock has earnings on May 4.
Viacom Inc., trading 43.94 with an IV30 of 31.40 and an HV10 of 12.35, is seeing bullish call spreads trade. The stock, with an ADV of 4700 and open interest of 90,000, saw a trader buy 5k of the May 45-50 call spreads for 1.05. The stock has earnings on May 4 and since the open interest on these strikes is small, this trade is opening. There was not stock against these spreads, which went up electronically.
This appears to be a customer that thinks the stock is going to rally in or around earnings as he or she needs the stock to rally above 46.05 between now and May expiration, a gain of about 5%.
This trade should be considered bullish the underlying and bullish volatility.
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