Trade of the Day: Yahoo April bull call spreads

The Trade:
A trader bought 30,000 April $16/$20 call spreads and sold 30,000 April $14 puts.

Trade of the Day: ORCL March $30/$33 bull call spread

The Trade:
A trader bought the ORCL March 2012 $30/$33 bull call spread 850x at $0.83, or $70,550.

Trade of the Day: LyondellBasell (LYB) December $35/$43 bull call spread

The Trade

Buyer executed the December $35/$43 bull call spread 5,000x for a debit of $3.05. Maximum risk is equal to the debit. Break even is $38.05, with profit potential limited to $43. Chart below highlights break even and maximum loss for the trade.

Trade coincides with an overweight rating set for the chemicals company this morning by Barclays. Looking for a recovery from the recent broad market sell off, with significant support at $28. Graph below shows risk profile for trade.

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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.

Trade of the Day: Exxon Mobil January call spread risk reversal

The Trade:
A trader sold the January $65 puts to buy the $70/$80 call spread for a $0.70 debit, or $490,000.

Trade of the Day: Sunoco (SUN) August $44/$48 call spread

The Trade
A trader bought the August $44/$48 bull call spread, 6,000x at $0.50, or $300,000.

Trade of the Day: Nike july $82.50/$87.50 bull call spread

The Trade
A trader bought the July $82.50/$87.50 bull call spread 4,000x at $2.

Trade of the Day: Short October $14 puts to buy October $17/$22 call spread

Trade of the Day:
A trader sold 10,000 October $14 puts to buy 10,000 October $17/$22 call spreads.

Risk/Reward:

Trade of the Day: Teradyne June $16/$18 call spread 3,000x

The Trade
A trader sold 3,000 June $18 calls at $0.25 and bought 3,000 June $16 calls at $1.10 for a debit of $0.85 or $255,000.

Trade of the Day: NetApp January 2013 $55/$45 bull risk reversal

The Trade
A trader sold 5,500 January 2013 $45 puts at $5.74 and bought 5,500 January 2013 $55 calls at $8.09 for a debit of $2.35 or $1,292,500.

Trade of the Day: Cisco 3 way June bull vertical risk reversal

The Trade

A trader sold 15,000 June $16 puts at $0.34, bought 15,000 June $18 calls at $0.47, and sold 15,000 June $20 calls at $0.12 for a debit of $0.01 or $15,000.

Options 101: The Bull Call Spread

The bull call spread is a bullish strategy used by traders who want to capitalize on an increase in the price of the underlying stock. The bull vertical consists of buying a lower strike call and selling a higher strike call. The call options will have the same expiration. The total cost of the spread is the debit, or premium paid, which is the max risk. The max profit potential is the difference between the strike prices minus the debit.

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