Call Spreads Nov 16th & Dec 21st...

[johnwgrant]

Anyone have any insights into the over 2500 call spread positions opened today - both Nov 16 & Dec 21st ?!?!

Are they bull or bear spreads !?!?

[TxPm]

These are Bull spreads where the writer will profit up to the $105 strike price where the upper calls were written. This strategy limits downside loss bc the $105 calls help pay for the $80 calls and profit is only "given up" if the stock breaks through the $105 level.

My guess is that the $105 level was used bc this is roughly the 52 week high on the stock. This could also be a short hedging out some SD risk for Nov/Dec without having to close out the shorts

Just my initial thoughts