​Weekly: BOX Preps Open Pit, Buybacks Tussle With Poor Earnings

In the listed markets Friday, outsized call option buying continued on SPY, with one investor buying to open 110,000 August calls on the fund. The contracts were targeting a 224 strike and were bought for 8c. Heavy call buying on SPY has been seen recently as some investors look to play the rebound in crude oil prices. Last Tuesday one investor bought about 180,000 June 10, 218 weekly calls for 11c, opening the position. EEM also saw increased flow today. In our U.S. coverage this week, we talk to BOX about their plans for an open outcry pit in Chicago. They’ll look to trade their realized vol options on the floor, when both are up and running. We also look at the forces at play in U.S. stocks, as buybacks fight with deteriorating corporate earnings for dominance. In Asia, hedge funds are increasingly looking at spread structures that allow them to own vol in the Kospi2 given near-term event risk and the attractive entry levels that is being created by systematic gamma sellers that are driving realized and short-term implied vol to depressed levels. Stay tuned for our Global EQD coverage next week. Starting from Tuesday, we’ll have some introductory pieces from market veterans and speakers to wet your whistle before the real show kicks off at the Aria on Wednesday. See you there!