Safeway (SWY) is up 28 cents to $19.99 and options volume is running 2X normal ahead of earnings (tomorrow, before market). Almost 6000 calls traded, or about 10X the number of puts. The focus is on the Aug and Sep 20s and seems drivin primarily buy call buyers. For example, the top trade of the day (1,121 Aug 20 calls for 70 cents on ISE) is an opening customer buyer, according to sentiment data. Implied volatility is up to 32.7, from about 31.3 yesterday. (Some of the activity might be tied to stock, as several blocks–539K–of SWY shares traded this morning as well.)
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.