Fusion-IO has been fighting back from long-term lows, and one investor is crafting an unusual upside strategy.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of 3,000 June 13 calls for $0.80. He or she also sold 3,000 March 10 puts for $0.40 and 3,000 January 2016 20 calls for $1.20. That translates into a cost of $0.80.
The complex three-way strategy was probably done in conjunction with a long position in the maker of networking chips. This way, the investor will leverage a rally to $20 in the next two years, while also agreeing to buy more stock on a drop to $10.
— Option Monster