Waste Management (WM) ticks 45 cents higher to $32.29 on light volume of 2.5 million shares, but options on the stock are seeing much more volume than usual. 25,000 calls and 1,720 puts so far. The flow is heavily concentrated in October 34 calls and includes a 21690-lot for 80 cents when the market was 70 to 80 cents. It looks tied to 757K shares at $32.29 and appears to be a new position. 23,535 WM Oct 34 calls now traded against 2,054 in open interest and implied vols (in the contract) are up 1 percent to 20. Shares were trading north of $36 in late-April before slipping on earnings on 4/26 and losing nealry 11 percent in the weeks that followed. Today’s Oct 34 call buyers seem to be anticipating a rebound through the summer months.
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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.