Wednesday, August 10, 2011

Trade of the Day: Halliburton September $50/$55 ratio call spread

The Trade
A trader executed the September $50/$55 ratio call spread 5,000/10,000x for a debit $.24, $240,000 total. The trade is bullish with a zone of profit potential from $50.48 to $59.52.

Total risk for the trade is unlimited or going short at $55. Maximum profit potential is $2,260,000 at $55. The above graph shows this.

A strong name in its sector with call volume nearly 2x daily average. Currently below its 200 day EMA with support near $42, but hit highs near $57 after strong earnings a few weeks ago. This is shown in the chart above.

*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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