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• Is Johnson & Johnson stuck in limbo?
• Durable goods, housing data on docket

• DECK 63% Rate It

Deckers Outdoor is back to long-term support, and one investor is getting long.

optionMONSTER's Heat Seeker tracking system detected the purchase of 2,500 January 52.50 calls for $4.50. Equal-sized blocks were sold the in the January 37.50 puts for $2.90 and the January 65 calls for $1.45. Volume exceeded open interest in all three strikes, indicating that new positions were opened.

The trade cost $0.15 and will earn a maximum profit of 8,233 percent if the stock closes at or above $65 on expiration. It also stands to lose money below $37.50.

DECK fell 5.09 percent to $44.71 yesterday and has lost almost half its value in the last six months. The maker of Ugg boots and Teva sandals has been plunging ever since Stern Agee issued a prescient downgrade on Dec. 15, citing slower growth. Shares gapped lower the next two earnings reports.

Now, however, the stock is back to the same area where it peaked in late 2007 and consolidated in mid-2010. Yesterday's three-way trade is an inexpensive way to play a bounce, combining elements of a vertical spread with short puts . (See our Education section)

Overall option volume was 7 times greater than normal amounts, according to the Heat Seeker.

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