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.
Risk/Reward
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.
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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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