Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 26, 2013  Tue 3:47 AM CT

DECK: SEE CHART GET CHAIN FIND STRATEGIES
A big call spread topped yesterday's option activity in Deckers Outdoor as shares hit five-year highs.

optionMONSTER systems show that a trader bought 3,500 December 82.50 calls for $2.25, above the ask price, while selling 7,000 December 85 calls for $1.15. Previous open interest in the strikes were 33 and 66 contracts respectively, indicating that new positions were established.

This ratio spread takes in a credit of $0.05, which will be the profit if DECK remains below $82.50 through expiration in mid-December. The maximum gain would be realized with the stock right at $85 at that time. Above that level, the trader is effectively short shares. (See our Education section)

DECK rose 2.15 percent yesterday to close at $81.64 after hitting an intraday high of $83.04, both their highest levels since 2008. The footwear maker was below $60 a month ago. 
Share this article with your friends


Related Stories

DECK

Call buyers bet on rally in Deckers

August 21, 2014

The footwear retailer, whose brands include UGG, gapped higher after reporting earnings last month and has been in a tight range in recent weeks.

Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER