Thursday, April 22, 2010

Seeing Modest Bullish Action on BHI

It looks like 1,249 contracts were purchased via a Jul 50/55 Call Spread. Looks like the 50 calls were purchased at about 3.70 while the 55 calls were sold @ 1.60. A net debit of 2.10. The max risk here is the 2.10 premium paid for the spread. Break even would come in at $52.10 while the investor stands to make a max reward of 2.90 if the stock were to close above $55.00 at expiration.

Trade

BHI jul 50 call purchased @ 3.70
BHI jul 55 call sold @ 1.60
Premium paid 2.10
Max risk 2.10
Max reward 2.90
Break even 52.10

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