Trade of the Day: Brazil July $72/$76 ratio call spread

The Trade:
A trader set up the July $72/$76 ratio call spread, 7,000x14,000, at a $1.04 debit.

Risk/Reward:

The trader is making a bullish bet that EWZ is trading near the bottom of its range. EWZ closed trading today at $71.91. The 52-week range is a low of $60.88 and a high of $81.76. If the spread was held til July expiration, the break even price is $73.04. The spread's max profit stock price is $76 by July expiration.

The chart shown above is the Brazil daily stock chart. The white line shown is the break even line of $73.04. EWZ traded 121,391 option contracts compared to average daily volume of 67,980.

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.