Thursday, July 28, 2011

Trade of the Day: ATPG Oil and Gas (ATPG) 3 way trade

The Trade
A trader sold 10,000 January 2013 $15 puts for $3.95 and bought the January 2012 $17.50/$30 call spread at $1.05. The trader received a credit of $2.90 or $2,900,000.

The trader is making a large long-term bullish bet on ATPG. The trader is willing to be long 1M shares near this level. ATPG closed trading today at $14.73. Rodman recently targeted $22 for the stock. Shares trade at 8.34X earnings and 1.5X sales. The 52-week range is a low of $9.97 and a high of $21.40.

The white line in the daily stock chart is a possible price target the trader sees. $12.1 is the break even point.  ATPG traded nearly 6x average volume for option contracts.

*Special thanks to Option Radar, BMO Capital, MEB Options, Bloomberg, Reuters, Optionistics, LiveVolPro, CBOE, AMEX, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!

No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

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