The company is going to report earnings Tuesday after the bell and the options market is implying a move of 7% in either direction between now and Friday expiration. The average earnings move is 8.5%.
During the session on Monday, Eison noticed a purchase of around 8,000 contracts of the April $600 calls for $4.3. The trade breaks even at $604.30 or around 9% above the closing price on Monday. Eison said this is a quite aggressive move, particularly in short-dated options.
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