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Noble Corp (NE) saw big and unusual call volume yesterday in the 7/22/16 8 calls. Over 30,000 contracts traded, with implied volatility jumping from under 60 to over 80.

This sets up a covered call trade with edge, buying the underlying shares and selling the July 8 calls (expire 7/22/16) .

Earnings are next week, so the calls expire before then to eliminate earnings risk.



Buy NE stock

Sell NE July 8 calls (expire 7/22/16)

7.80 net debit

Sell 1 call for every 100 shares of stock you buy