Any Ideas about these UAL Call Option Buys?

[JesseJamesFinn1]

UAL had some large option trades today, if you go through the Time-and-Sales I think you might decide they were buy orders. If not can you explain your theories please? Do you think the Nov $62.50 calls were matched with the December $62.50s because of the time of purchase?

Nov $62.50 Calls


10:15:50 Bid 1.53 x $1.57 3394@$1.59

11:19:48 Bid $1.48 x $1.53 4232 @ $1.50

Total Volume for for the Nov $62.50 Calls was 16,894 contracts. I wonder how long it takes to shop a order of that size?


With December $62.50 Calls 2761 @ 2.38 was $.01 above the offer at 14:00:02

 

[DeltaRisk]

UAL had some large option trades today, if you go through the Time-and-Sales I think you might decide they were buy orders. If not can you explain your theories please? Do you think the Nov $62.50 calls were matched with the December $62.50s because of the time of purchase?

Nov $62.50 Calls


10:15:50 Bid 1.53 x $1.57 3394@$1.59

11:19:48 Bid $1.48 x $1.53 4232 @ $1.50

Total Volume for for the Nov $62.50 Calls was 16,894 contracts. I wonder how long it takes to shop a order of that size?


With December $62.50 Calls 2761 @ 2.38 was $.01 above the offer at 14:00:02

I'm not sure you understand how prop trading works.

 

[vanzandt]

I'm not sure you understand how prop trading works.

I know I don't.
How's it work? They give folks money to buy call options on airlines?
No wonder they all fail.

 

[sle]

I'm not sure you understand how prop trading works.

By all means, enlighten us

I know I don't.
How's it work?

By the looks of it (200k in SN vega) some dealer desk too it down, either as a listed print or an OTC (listed would be my guess). Since we don't know where the stock was crossed, it's hard to guess the price or the impact on vol, but usually large SNO prints are clients buying dealer selling. It's not something out of the ordinary for something liquid like that.

 

[JesseJamesFinn1]

By all means, enlighten us


By the looks of it (200k in SN vega) some dealer desk too it down, either as a listed print or an OTC (listed would be my guess). Since we don't know where the stock was crossed, it's hard to guess the price or the impact on vol, but usually large SNO prints are clients buying dealer selling. It's not something out of the ordinary for something liquid like that.

Thank you for posting a cool reply, appreciate trying to guess which direction its going.

 

[DeltaRisk]

By all means, enlighten us


By the looks of it (200k in SN vega) some dealer desk too it down, either as a listed print or an OTC (listed would be my guess). Since we don't know where the stock was crossed, it's hard to guess the price or the impact on vol, but usually large SNO prints are clients buying dealer selling. It's not something out of the ordinary for something liquid like that.

Not sure you know how primary dealers trade. I spent a decade on a desk.

 

[DeltaRisk]

Not sure you know how primary dealers trade. I spent a decade on a desk.

Prop is only edge, OTC or exchange traded.
They've got algo's, I couldn't follow for the life of me.
I was an Ivy, so there's that.

 

[vanzandt]

I spent a decade on a desk.

You should have used a chair.

 

[sle]

Not sure you know how primary dealers trade. I spent a decade on a desk.

I know a thing or two. While I have never ran a SNO book while I was on the sell side, I have managed plenty single name risk and I certainly execute "some" SN vol with dealers now.
Ps. It's possible that we have worked together, world is funny like that

 

[sss12]

Prop is only edge, OTC or exchange traded.
They've got algo's, I couldn't follow for the life of me.
I was an Ivy, so there's that.

Hope your elevator pitch is smoother than that !