One investor wants to map out profits in Garmin as the navigation stock treks higher.
optionMONSTER’s Heat Seeker monitoring system detected the purchase of about 3,100 January 45 calls for $2.90 and the sale of similar number of January 30 puts for $2.45. Volume was more than 8 times open interest at both strikes.
The trade cost $0.45 and lets the investor control a large number of shares at a fraction of the cost. If GRMN climbs, they’ll make money from the calls appreciating and the puts losing value. The opposite will be true in the event of a drop.
— Option Monster