For the second session in a row, a large trader is positioning for Vale to rally in coming weeks.
Yesterday a large trader was rolling calls from the September 17 strike to the October 18 contracts, and today our scanners are seeing more of the same. optionMONSTER’s Heat Seeker system shows that 22,556 of the September calls were sold for for the bid price of $0.20 as 30,000 of the Octobers were bought for the $0.24 ask price.
Volume was below previous open interest in the 17s but above it in the 18s, indicating that the trader is again closing the September contracts that expire at the end of next week and opening a new position in October. The adjustment cost just $0.04 and provides another month for the trade to work at a strike that is $1 higher.
— Option Monster