Seeing a large buyer in H&RBlock puts this morning and total option volume 10x recent average levels. Over 12000 July 20 puts traded this morning, with a customer paying from 30c to 33c to open a new position. Earnings expected a week from monday and stock is a bit lower since the buyer received the bulk of his trade in a 33cent cross on the ISE. Buyer may not need to wait for earnings to book some profits, as the puts are currently 65cent bid- a handy 2 hour 100% return!
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.