Most of the attention was garnered by the October 44 call where more than 6300 contracts have already exchanged hands for a volume weighted price of $0.12. most of the contracts crossed over in one quick swoop and in addition to that the volatility that was implied also had its eddects as it saw an increase of 3.7% points during the time of the trade.
Call buyers anticipate that BP will soon recover from this drop which was mostly news driven and it will head back to the territory that it was treading on in May. Specifically there is expectation that the stock will topple the breakeven rail soon enough to a price of $44.12. As of now, there is a 1 in 8 chance that this call will run into some good money during its lifetime according to its delta factor which stands at 0.13 or 13%.
Traders have also ventured towards the November 44 call. Almost all the contracts here were traded at the price of $0.41. the implied volatility has also trickled to slightly higher which points to the initiation of longer call positioning according to the International Securities Exchange.
BP is all set to report its third quarter earnings, and analysts predict that they will see a profit of $1.17 per share this quarter. This is also due to the fact that the shares for BP have jumped by 3.3% in the week after last years’ Q3 results. Will history repeat itself? Only time will tell.
