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April 30, 2013  Tue 9:12 AM CT

UA: SEE CHART GET CHAIN FIND STRATEGIES
Under Armour in the middle of its recent range, and one trader sees limited gains in the next two months.

optionMONSTER systems show that a trader bought 5,000 June 57.50 calls for the ask price of $1.90 and sold 10,000 June 60 calls for their bid price of $0.90. The open interest at each strike was under 200 contracts before the session began, so this is a new vertical spread.

The position cost the trader just $0.10 to open, plus the margin requirements on the additional June 60 short calls in this ratio spread. That small debit is the maximum loss if shares remain below $57.50 through expiration. The maximum gain would be realized if the stock were right at $60, and above that the trader is effectively short shares. (See our Education section)

UA is up fractionally to $55.98. The athletic-apparel retailer has bounced between $54.50 and $58 for the last few weeks. It traded up into this range after bouncing off support at $46 several times since the beginning of 2013.

More than 15,000 UA options have changed hands so far, compared to a daily average of 2,000 in the last month.
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