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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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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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