Largest option buying in equities so far
David Russell | [email protected]
SLM (SLM): Investors bought 14,819 contracts each in the July 18 puts for $0.40 and the July 20 puts for $1.21. Known as a strangle, the position will make money from volatility increasing. SLM fell 1.32 percent to $20.55.
Bank of America (BAC): Some 64,000 April 12 calls were purchased for $0.04, but volume was below open interest at the strike. BAC declined 4.48 percent to $11.73.
Eli Lilly (LLY): An investor bought 9,014 April 52.50 calls for $4.33 against open interest. He or she simultaneously sold 9,014 July 55 calls for $2.75 and bought 9,014 July 47 puts for $0.22. That suggests they closed a protective collar strategy expiring this week and rolled it forward by three months. LLY fell 0.47 percent to $56.91.