Vale SA (VALE) $30.81 +2.16%
Big Print in VALE after an investor bought 75K June 33 calls at an average of $1.248 per contract. It was tied to shares at $30.78, on a 36.7 delta (2.75 mln shares). 80K now traded vs. 10.2K in open interest.
Category: All Stocks, Basic Resources, Large Cap Stocks
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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.
I believe they were June $33 Calls, not the $30 Call.
Good catch. thanks.
CNBC Fast Money commented that this trade was a buy-write on the bid side. Do you agree? I would love to hear your answer as I am long Vale and would like to participate on the option upside but if this took place on the buy side then the outlook is less bullish.
Hi Good question. My info comes from the exchange floor — two different sources. I would still consider this bullish, even though it’s tied to shares.
Fast Money got it wrong this time.
Not the first time for sure. Thanks for the confirmation. I will take it as bullish, and on “ask” side for my reference.
Guys the only way i see this it’s a bullish bet, because sure doesn’t look like a hedge: Buying 2.75 mln and selling calls for approx. 1.31, altought chart is near resistance…