Staples (SPLS) loses 9 cents to $15.34 and a Dec 13 – Nov 16 risk-reversal trades on the office supplies retailer for 25 cents, 550X on ISE. The combo has traded multiple times today on the exchange, where ISEE is reporting a customer is selling Dec 13 puts to buy Nov 16 calls. Staples saw bullish trading Friday as well (see 11/11 color) and the flow created 7195 contracts of new open interest in calls on the stock (compared to +783 puts). Meanwhile, implied volatility in options on SPLS is up 11 percent to 57.5 ahead of earnings, which are due out tomorrow morning.
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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.