Coffeygrinds

Notes on Sherwin-Williams' Earnings Call

Sean,
We are seeing heavy put action in Sherwin Williams going in to expiration this week, but point out that this appears to be a roll, or calendar spread. When someone has positions in one month and wants to stick with the position for another month, quarter etc, they sell their expiring options and buy the other month, usually at the same strike price. Thus they are "buying time", so this is frequently referred to as a time spread, or calendar spread. It is not indicitive of anyting other than the person(s) want continued protection, and or exposure for longer than their expiring position would provide. It is not the same a fresh money being committed.
Are you still long SHW?
Ac

The roll is from the May 55 puts to the June 55 puts and is about 6,000 contracts of each.