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January 11, 2013  Fri 1:47 AM CT

UBS: SEE CHART GET CHAIN FIND STRATEGIES
A large trade is looking for higher volatility in Swiss financial firm UBS, which finished yesterday at a new 52-week high.

optionMONSTER systems show that a block of 6,050 June 15 puts was bought for the ask price of $0.65. Open interest in the strike was just 18 contracts at the start of the session, so this is clearly a new position.

Less than a minute later, 151,250 UBS shares were bought for $17.15. The combination of the stock and options created a delta-neutral position that is betting on greater volatility, rather than a particular directional move shares.

UBS closed at $17.15, up 2.02 percent on the day and at an 18-month high. Shares were below $10 at their lows in July.
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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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