OptionsHouse

Options Trading News

February 27, 2013  Wed 10:00 AM CT

ODP: SEE CHART GET CHAIN FIND STRATEGIES
A trader is looking for shares of Office Depot to calm down after wild volatility last week.

optionMONSTER systems detected the sale of 10,000 July 4 calls for the bid price of $0.45 this morning. This is clearly a new position, as open interest in the strike was 6,196 contracts before the day's trading began.

Seconds later, 600,000 ODP shares were bought in a single print for $4.08. The combination of stock and short calls creates an overall delta-neutral position that is looking for lower volatility, rather than a directional bet. (See our Education section)

ODP is up fractionally at $4.02 after settling down around this level in the last five trading days. The office-supply retailer was hovering around $4.40 in the previous three weeks before popping above $6 briefly last Wednesday amid quarter results and reports that it would merge with rival OfficeMax. Shares hit a low of $1.51 in August.
Share this article with your friends


Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »