HSBC (HBC) is up 3.2 percent on earnings and options were active yesterday ahead of the news, with 18,000 contracts trading, 2X average volume. One large trade involved the purchase of the January $65/$50 strangle for 3,000 contracts at $1.60 with shares at $58.30, a trade looking for the IV of 32%, near 1 year lows, to increase in coming months. This same trade was emulated throughout the day for a few thousand contracts. Shares broke out of a descending triangle today, a tight consolidation pattern after a run higher that looks to be ready for a new leg higher. The 200 week EMA near $68 looks to be a targeted move here, and this trade is profitable with shares above $66.60 or below $48.40.