• 
• See all for optionMONSTER
• View Print Version

• Coach pullback draws bullish strategy
• SPX drop sends VIX surging past 20
• Bears target Keryx one day after rally

• VIAB 0% Rate It

One trader is tuning into Viacom for a spike in volatility.

optionMONSTER's tracking systems detected the purchase of 15,000 June 50 calls for $1.45 against open interest of just 3,895 contracts. A block of more than 500,000 shares was sold in the media company at about the large time, indicating the use of a delta-neutral strategy.

Because the investor has long calls and short stock, he or she has no directional bias on the shares. Instead, they stand to profit from an increase in option premiums that would result from higher implied volatility . (See our Education section)

Implied volatility has been dwindling in the name since October and now stands at about 20 percent. It hasn't been that low since early 2010.

VIAB rose 2.45 percent to $48.33 yesterday, realizing most of those gains in the last 15 minutes of the session. The trade was a little unusual because there don't appear to be any upcoming catalysts that would cause shares to move aggressively.

Recent trading has been bullish, with the stock rallying off its 50-day moving average amid heavy volume. More than 23,000 options contracts traded in the name yesterday, which was 11 times more than normal activity.

Related Options Articles

• 
  Huge bullish trades in sector funds
  5/23/2013 05:25 AM
• 
  Cree lights up with large call spread
  5/23/2013 05:24 AM
• 
  Bulls want to fly higher with Expedia
  5/23/2013 04:24 AM