Exact(6)
We note that the size of the transaction suggests the investor responsible for the trade is likely utilizing the spread to insure the value of a long underlying stock position through expiration in three months.
If investors short the calls do not currently hold long underlying stock positions they may face devastating losses if the EWG's share price exceeds $21.30 ahead of expiration day in May.
We note that the buying interest in put options at this strike may be the work of traders holding long underlying stock positions, which indicates cautious behavior rather than outright bearish bets that shares are set to decline in the next few weeks.
EFP trading allows for the trade of a short (or long) underlying position for a short (or long) SSF position.
Put buyers are perhaps building up relatively cheap downside protection on long underlying stock positions in case Citrix Systems' first-quarter report fails to impress.
It looks like the large-volume put transactions observed today are the work of traders rolling up protective stances on RCL to hedge long underlying stock positions through the next several months.
Similar(53)
In a statement issued less than a week after the referendum result, Redrow said: "The fact remains that there is a long term underlying demand for new homes following decades of under supply.
But we badly need the same kind of focus on the long-lasting, underlying abuses of corporate might.
Despite the importance of tropical forest fragmentation on carbon balance, most of our knowledge comes from few sites in the Amazon and disregard long-term underlying processes related to landscape configuration.
Following high profile race-related conflicts, and long-term underlying racial tensions between local White British and Asian communities, major riots broke out in the town.
Nevertheless, some of the posited relationships are plausible, especially between development of health cadres and a strengthened public administration, which in the long run underlies a number of state-building features.
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Justyna Jupowicz-Kozak
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