While I would be the first to admit, that it is hard to decipher the true meaning of most large option block trades (speculation vs hedging vs volatility plays), I do find myself paying extra attention when large volume occurs in names that rarely see any option volume. Such was the case last week when I posted on the buy interest in First Data (FDC) calls in both June, July and August.
Lo and behold….this morning, Goldman Sachs upgrades FDC to buy from neutral and the stock is up $1.00 to $21 (+5%) in the premarket. A coincidence? Perhaps…..but I have been doing this long enough to know that nothing should surprise anyone anymore in terms of uncanny timing.
As we look to expand our blog posts in the coming weeks in conjunction with the pending launch of our new updated website, I will continue to focus readers attention on more such one off type option situations.