Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 17, 2012  Mon 11:02 AM CT

EMC: SEE CHART GET CHAIN FIND STRATEGIES
A long-term spread is positioning for a limited pop in EMC.

EMC is down fractionally today, trading at $27.65. Friday's close was the highest since the start of May for the data-storage company.

A trader bought 5,600 of the January 2014 30 puts for $5.26 and, at the same time, sold the same number of the January 2013 30 puts for $3.17. The volume at each strikes was more than open interest, so this is a new calendar spread.

The position is designed to profit from the increased time decay of the nearer-term options. The trader is essentially betting that EMC will be around $30 at the start of next year.

The trade cost $2.09, which is at risk if shares move too far in either direction away from $30. (See our Education section)
Share this article with your friends


Related Stories

EMC

Calls surge in EMC before earnings

June 26, 2014

Traders are snapping up September calls in the data-storage company ahead of quarterly results scheduled for July 23.

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER