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April 9, 2013  Tue 11:37 AM CT

SFLY: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Shutterfly have been range-bound for months, and one trader is betting on limited upside in coming weeks.

optionMONSTER systems detected the sale of 3,400 May 47.50 calls for the bid price of $0.80. The volume was above the open interest, signaling a new position.

The calls could have been sold naked with an initial bearish bias, as the delta of the options suggests just a 25 percent probability that SFLY will be above $47.50 by expiration. Alternatively, the options could have been traded against long shares in a covered call strategy, which would be bullish up to that strike price but not beyond. (See our Education section)

SFLY is up fractionally on the day at $43.59. Shares of the photo-sharing service gapped above $40 from below $34 at the start of February and hit a 52- week high of $45.43 a month ago.

More than 4,500 SFLY options have changed hands so far today, compared to a daily average of 771.
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