VNDA - Monster buy-write. A bullish trader bought shares at $10.80 and sold 10,000 contracts of Sept $12.50 covered calls at $1.13. The trade will yield a profit of 29.25% if the stock closes above $12.50 by Sept expiration.
S - Massive strangle sold in May implying the trader believes Sprint will remain range bound through May expiration. The trader sold 45,000 contracts of May $2.50 puts and $4 calls for net credit of $0.27.
MCO - On Tuesday, we noticed a trader sold 25/28 strangle. The trade continued today with another strangle of 5000 contracts sold in March of $26 puts and $27 calls for a net credit of $2.14. I like this trade after two days of convincing volume. But I would rather play it with 24/27/30 butterfly spread in May for a net debit of $1.10 or less.
HP - Outright bearish bet as one trader bought March $40 puts for $1.40. This could have been tied to HP shares, however there was no obvious connection. $40 has tremendous support. Something to keep an eye out.
BBY - Bullish action continues. This time traders bought Feb $36 calls with biggest blocks coming on the offer price of $0.40. These calls expire in one week. Again, something to watch closely.
DAL - A trader did a massive calendar backspread with a bearish profile. The trader sold 10,000 contracts of March $12 puts for $1.05 and bought 20,000 contracts of June $10 puts for $1. The trade will generate a moderate return if the stock essentially holds at current levels. It will also profit greatly if shares fall sharply. The losses on the upside are limited. I like this trade.
AVB - At least one trader is convinced that the stock will not go below $65 by April expiration. The trader sold over 4,200 contracts of April $65 puts for a net credit of $1.50.
Good luck!
HP - Outright bearish bet as one trader bought March $40 puts for $1.40. This could have been tied to HP shares, however there was no obvious connection. $40 has tremendous support. Something to keep an eye out.
BBY - Bullish action continues. This time traders bought Feb $36 calls with biggest blocks coming on the offer price of $0.40. These calls expire in one week. Again, something to watch closely.
DAL - A trader did a massive calendar backspread with a bearish profile. The trader sold 10,000 contracts of March $12 puts for $1.05 and bought 20,000 contracts of June $10 puts for $1. The trade will generate a moderate return if the stock essentially holds at current levels. It will also profit greatly if shares fall sharply. The losses on the upside are limited. I like this trade.
AVB - At least one trader is convinced that the stock will not go below $65 by April expiration. The trader sold over 4,200 contracts of April $65 puts for a net credit of $1.50.
Good luck!
