Investors are bidding for puts and calls on Sotheby’s (BID) ahead of earnings. Shares are off 59 cents to $39.37 and the flow includes a multi-exchange sweep of 1,366 Mar 33 puts for 25 cents per contract. Data hints at a closing buyer. Meanwhile, April 45 calls are the most actives on the stock. 2,681 traded at a VWAP of $1.01 and sentiment data hints at opening customer buyers. Implied volatility isn’t changed much — down 1.4 percent to 52 — even as earnings are due out after the closing bell. Indeed, the stock doesn’t tend to see much volatility around earnings recently. The average daily post-earnings move over the past four quarters is 2.7 percent. Still, the March 39 straddle is currently trading for $3.60, or about 9.5 percent of the spot price.
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.