Trader looks for sharp move in Pfizer
Chris McKhann | firstname.lastname@example.org
PFE is up 0.8 percent to $25.23, its highest level since September 2007. Shares were down at $17.05 a year ago.
The big trade of the day is a block of 20,000 December 25 puts, which appear to have been bought for $0.65 on a wide bid/ask spread, according to optionMONSTER's systems. The volume dwarfed open interest of a mere 703 contracts in the strike at the start of the session, so this is a new position.
Two minutes later, the largest block of stock traded in a single print of 925,000 shares that went for $25.3849. Together, the stock and options seem to have been combined for a long-volatility play.
The implied volatility of the options 15.8 percent, while the 30-day historical volatility is near 52-week lows at 11.5 percent. So the bet is that volatility will pick up in coming months. (See our Education section)