|
PureBytes Links
Trading Reference Links
|
It appears, most likely to have been a simple roll. Rolling out of the June
40's prior to expiration and trading them in for the Dec. 40's. It was most
likely a position put on when WMT was lower at some time in the past ..
which has now gone ITM and the holder is unwilling to lose the underlying
stock position and attempting to buy some more time. Having said that there
is no absolutely perfect way to know exactly what the user was doing without
have more info. The floor would know if, for example, the Junes were closing
and the Decs were opening that would confirm a roll.
Could you benefit from this info: Yes and no. The raw information is
really of little or no value to an individual investor. You do have,
however, an institutional investor who is fairly bearish on the stock, if it
was - in fact - a roll.
If they had a more bullish view they would have rolled up in strike and out
in time... not just forward in time.
The other big caveat is I would really like to see all the trading in WMT
options just to feel better that this trade wasn't really something else.
-----Original Message-----
From: CalaxCorp@xxxxxxx [mailto:CalaxCorp@xxxxxxx]
Sent: Wednesday, June 13, 2001 1:45 PM
To: realtraders@xxxxxxxxxxxxxxx; AJacobson@xxxxxxxxxxxxxx
Subject: Re: [RT] Options question
Dear Real Traders:
I have an options question. This morning it was brought to my attention
that
there were 2 large volume call transactions on WMT. I looked up CBOE web
site and saw these volume numbers: (1) Jun 40 calls -- 5000 contracts. And
(2) Dec 40 call -- 5000 contracts. Note that these are both in the money
calls, with just 3 days left till expiration. WMT was trading at around $50
at that time.
I wonder what kind of (institutional) play this could have been?
And how would a small short-term trader like myself take advantage of this
situation, either on the stock, on the options side, or on bond futures
side?
Sincerely,
Bill
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|