8 Million $ option trade

[Gator]

I see @ 4:24 today 22,000 contracts of the Sep 100 calls were purchased at $3.75. That is an $8.25 million option trade. I could see someone like Wells selling calls as to agree to sell a third of their holdings at $100, but who is buying that many calls? The shorts as insurance? That is a big price to pay for 114 days of protection at over 50% higher prices than today's close.

[Putncalls]

I would wager that the calls are naked.

[ValueSleuth]

There were also 24,800 June 77.50 options traded. Depending on what the OI is at the end of the day, we'll be able to discover how many of these were part of a roll, perhaps into the Sept issues, or whether there is another kind of linkage, maybe a spread.

[sltibbs]

Notice there were a large number of June 65s as well, which as you likely recall were used in the complex option trade previously discussed involving selling shares, selling 65 calls, buying 77.5 calls, and selling 90 calls. I too am curious to see what happened.

Best,
Sam

[Gator]

NEW YORK (AVAFIN) -- During today's trading session, a low put/call ratio alert was raised on shares of InterOil Corporation. The increased call volume ran 8.3x the volume of put contracts yielding a 0.12 put/call ratio.

Investors use options to manage risk and to speculate on price changes. Options can provide significant leverage if the stock moves in the right direction but aslo end up worthless if it doesn't.

Shares of InterOil Corporation edged up $0.43 (+0.67%) to $64.85. The price of the stock ranged between a low of $64.27 and $66.86 respectively. The trading volume of 1M is above the 90 day average volume of 793M shares. IOC is trading above the 50 day moving average. The stock's 52 week low is $31.18 and 52 week high is $75.87. Within the last week, the shares have gained 12.31% of their value.

http://www.avafin.com/articles/1014797.html