Apple Computer (AAPL, news, chart, volatility) is trading higher today, just above $109 and a large block of October 120 Puts appears to have been scalped on the ISE around 10am. 27min into the day. With stock up $2.08 to 107.34, 15,000 contracts were crossed for $17, follwed 25minutes later by similar sized block traded at $14.95. If a broker-dealer positioned the first block selling to the customer, then later found a willing seller when the stock was nearly $2 higher, this scalp would have netted 2.7 million to the BD.
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.