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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. 
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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