A large trader apparently believes that Spirit AeroSystems is
ready to take off.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 5,285 October 35 calls for $1.60 and the sale of an
equal number of October 30 puts for $1. Volume was more than 35
times the previous open interest in each strike, indicatings that
new positions were initiated.
The trade cost $0.60 and will behave similarly to owning shares:
will appreciate if the stock moves higher, but the
puts sold short
will gain if it heads lower. Unlike owning shares, however, the
position will track SPR less closely as
and expire worthless if it's still between $30 and $35 by the third
Friday of October. (See our
SPR is off fractionally at $32.42 in afternoon trading. The maker
of airline fuselages roughly doubled last year, only to plunge on a
poor earnings report in February. The most recent set of numbers on
May 2 beat expectations, and the shares gapped higher.
Overall option volume in the name is already double its
full-session average today, according to the Heat Seeker, with that
bullish trade accounting for more than 80 percent of the total.
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