Unusual as usual

Why will one trade an YHOO option that is still 28% OOM, well over 20K Oct’07 call 40 contracts were traded vs. open interests of only 1245! I wonder. Why will there be over 16K volume for Southwest airline $17.5 Sept call (vs. 3K open interest) when the stock is still 15% before making any money. Why? The same goes for VMED May $25 calls.

Well I can understand huge puts volume on CECO and CBH as the earnings are very near.
Profitable trading, OptionPundit






4 responses to “Unusual as usual”

  1. jcedgmon Avatar

    I don’t know what to think on DNDN. Large open interest across the board although the May 40 calls really stand out. We’ll see if today’s volume increase or decreases OI.

    Heavy action on the VIX May 19 Calls today.

    Also, on ETFC and XHB.

  2. Jim kingsland Avatar
    Jim kingsland

    the luv and Yhoo activity is interesting isn’t it.

  3. OptionPundit Avatar

    Ture I have noticed that too..there seems to speculation for market correction before May expiration. Watch out for the “golden week” period in Japan that ends around end 1st week of May for any potential selling.

    Jim, other interesting thing is that both these counters doesn’t move so much except the earnings time. Seems like there is expectation for great results.

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