Interoil (IOC) adds $1.62 and one strategist is apparently rolling a bullish position from June to September. 24,000 Jun 77.5 calls were sold on the stock while 6,000 Jun 65 calls plus 800 Jun 60 puts were bought on the Australian oil and gas refiner. The activity probably closes out positions opened on May 3 when 24,000 Jun 77.5 calls traded for $1.30 and 6,000 Jun 65 calls at $2.76. 15,000 Jun 90 calls also traded on the bid at that time and it appears that most are still open. Shares are up 17.8 percent since May 3 and the Jun 77.5 calls are being liquidated at $2.05. Meanwhile, a new bullish position is being opened in 22,000 Sep 100 calls on IOC for $3.75 per contract. The same strategist also sold-to-open a Sep 40 – 90 strangle on the stock at $7.10, 5000X, to open and sold 75K shares in stock. At the end of the day, $3.7 million was paid on the complex package and the final position looks like some kind of weird short put + call ratio backspread on the stock in the September options (plus the existing position in the Jun 90 calls).
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.