![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnxADnqux1Cr15f8_uf9TVSraf7-xOtAc34-MlNPSen-VY1YUaRPKVubT9lDkDgH66His9bJlNEjsNJEZtrWtKmUe9RFngyRC2HIEfYsS4RvmJUoGVZRH-Rw5anwRjc8Z0Pp3XRI_GgmyX/s400/vtr_summary_7-7-10.gif)
Ventas, Inc. is a real estate investment trust (REIT) with a portfolio of seniors housing and healthcare properties in the United States and Canada.
I posted an article on this company back on May 19th (click the title to read it): Ventas (VTR) - Jun Vol Seller on Range Bound Stock.
In that post, a June 40/50 strangle seller 3000x came in with the stock at $46.13. The trade won max gain of $285,000. Yesterday, the same strikes traded in Aug, but the trade is different.
The company traded over 10,000 options on total daily average option volume of just 996. All but ~85 contracts were accumulated in one position; an Aug 40/50 risk reversal (buy puts/sell calls). The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVdVseNCLA5JkT3rgKihb-ZvznbchOQk6B448y5rZf8RN5EQNDAIX09a9OBrDED7tnY13DAlemVYxSgOnXxXmdDOeGwcKlBYL3KK3gYmUcVhPrCT6BtAGqWaGDGHdFtkSuLjT6r8mr4rUC/s400/vtr_stats_7-7-10.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmgkpJVJzsNmIGv4oGkYBohUMU2mm-OBz3-xAwdhcw3DqsyMaMO5W75VFaEtcfOpcwBDD64PIo-J6sdI1t58jhNyW9iRyZVFrYp8mEsyN3UHkFrwoIgAI9R4ty_w2CgFMdAGFq-UiELoXP/s400/vtr_trades_7-7-10.gif)
The Options Tab (click to enlarge) illustrates that both the calls and puts are mostly opening (compare OI to trade size).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWnL_Ii_n5HtKUTk9HimrUGiTcZPm-R71TJ_g8J16ab655EWLZNE_WY6ZGK9B8Tc_YcZ2jJ8V_uw3Tpbeu23ggSQOXwpb4HrUBd06XAZTQgdkNOplyVrS7EngKoLJAgNuwJ5z_pmqSsrsC/s400/vtr_options_7-7-10.gif)
The Skew Tab snap (click to enlarge) illustrates the vols by strike by month.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX5PyyZxL6UiKiYlBwkiRSFO2DeztmQinqw0JelguBWn0NvMEqN8ba0SJ5SthanOue8RSqrvNAinE13bhtzWtE39El_ZpHbqWHiFbUxBnFOOkk8xNvfhF5MZYiyVqisS8jPlcTEP7EEYGE/s400/vtr_skew_7-7-2010.gif)
Much like the last post with the strangle seller, we can see the vol in the puts is considerably higher than the calls. i.e. the skew holds a normal shape.
Finally, the Charts Tab (6 months) is below (click to enlarge). The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio24Tzem4IawZPSUPSQ59_S8T_qgrV58wy2XjBlJxJNgq4U0NqAMYRVwu7cWnSWaK8n6nGNIlRGnfmU8uLtQsFMNSWuKLC9Obh__qDeci7hSF57ncqHFl2ZsvVPuR8y6H65m50tkWTo2PU/s400/vtr_charts_7-7-2010.gif)
We can see this choppy action in the ($40,$50) range. The bet this time is for a drop below $40 rather than a continuation of this trend. Note that earnings are due out late July (ish).
This is trade analysis, not a recommendation.
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