AmTrust Strategy Bets on Big Move

One trader is looking for a sharp move higher or lower in shares of AmTrust Financial Services this summer.

optionMONSTER’s Depth Charge system shows that a block of 4,000 August 45 puts were bought for $4.80 this morning. This is clearly a new position, as previous open interest in the strike was just 340 contracts.

A minute later, 240,000 shares were purchased in one print for $42.75. The combination of stock and options creates an overall delta-neutral strategy that is looking for a big move up or down and/or for more actual volatility than what is implied by the put pricing.

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