Herbalife has spent almost two months in a quiet trading range, but one investor is looking for the stock to wake up.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of 4,000 May 67.50 calls for $7.60 and the sale of a similar number of May 77.50 calls for $2.85. Volume was more than triple the previous open interest in each strike, indicating that new positions were implemented.
The trade cost $4.75 and will inflate to $10 if HLF closes at $77.50 or higher on expiration. That would be profit of 110 percent from a move of about 12 percent in the underlying share price.
— Option Monster