As word-spotting systems spread, call-centre training schools have started coaching students in gaming the system so they look good under the additional scrutiny.
You can construct a similar return profile with three trades--a "bull-call spread, " in the argot of the Chicago options pits.
There is also the possibility that the trader was opening an in-the-money bear call spread.
The largest single trade on YHOO today, a one-by-two ratio call spread, suggests the price of the underlying may post limited gains during the first seven months of 2012.
FORBES: Options Player Bets Big On Yahoo Bounce, Bears Speculate On Lululemon Losing Its Lift
"There's a call out there to spread that information -- podcasting is one of the easiest ways to do it, " he told CNN.
The trader significantly decreased the cost of taking a directional stance on the stock by employing a call spread instead of buying the closer-to-the-money calls outright.
FORBES: Petrohawk Bulls Stock Up On Calls, Speculators Flock To Dell, The Gap
According to data from Trade-Alert.com, one trader opened a bull call spread using the November 26 and 31 strikes.
FORBES: Plains Exploration & Production's Rebound Sparks Unusual Bull Debit Spread
According to data from Trade-Alert.com, one trader opened a bull call spread using the January 2012 20 and 17.50 strikes.
Traders looking to take advantage of a post-earnings AAPL rally may want to consider a bull call spread centering on the May 345 and 360 strikes.
Traders looking for a pre-earnings strategy for PCLN might want to consider a bull call spread.
FORBES: Priceline.com Earnings: High Expectations, Volatile Price Action
Perhaps the investor is giving up on the near-term pop required to push those calls in-the-money by next Friday, in favor of the October call spread.
FORBES: Bulls Eye Rebound For Toyota And Sony, More Upside For Abercrombie
Bulls looking to hedge their bets in the event of a post-earnings pullback should considering coupling the bought 12-strike call with a sold April 15 call, resulting in the initiation of a bull call spread.
应用推荐