2,000 April 20 $65 puts . . .

[Petrovale]

Yesterday at 15:07 PM, volume jumped 205k shares in a stock option trade derivatively priced at $75.45. It looked like a buy of the Apr $60 calls, which was then converted to stock. In total, 1055 Apr$60 calls (Delta 0.98) were traded, but Open Interest remained the same for the day. Incidentally, 1090 Apr$60 puts (Delta -0.16) were traded, with Open Interest up just 14 contracts for the day. The transaction was visible in the total volume count, but not on the intra-day stock chart, which only showed a 3500 unit order executed at $75.22. Maybe the source of the shares was a dark pool because the stock transaction didn't show up in the print. There was a similar options transaction in the Apr $90 series yesterday, involving 2183 call contracts and 2141 put contracts. If this is one and the same party, it has hedged its position to (almost) delta neutral. But, then, we should have seen an instantaneous volume spike of about 650.000 shares, both printed and without moving the stock price, right? According to my CBOE paper platform, this would be a synethetic construction, with break even at $72.83 and a <50% probability for any profit. Max profit: >$23.5 million. Max loss: Infinite... May IOC prove the short side dead wrong!