Puts on bank stock HSBC are trading nearly 10x their normal pace this morning, as the stock lifts 7.3% to 62.70 on today’s rally. Buyers are focused on the January $70 strike, with call buyers early on the CBOE, paying $5.20 to $5.60 for 2000 contracts, and then a delta-neutral Jan 70 Put buyer on the PHLX 3000x. This continues a trend seen yesterday, when 3000 of the same 70calls traded to creating new open interest and lift implied vols 12 points.
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.