An odd call spread is targeting Level 3 Communications as its shares spike higher.
optionMONSTER systems show that a trader bought 3,000 January 22 calls for $1.45 and seconds later sold 4,600 March 24 calls for $1.50. The volume at each strike was above open interest in the strike at the beginning of the day, so this is fresh activity.
This diagonal call spread is designed to profit from further upside, but not too quickly and not beyond the $24 level. The trade can profit with shares anywhere below that price, but those gains would be limited. (See our Education section)
— Option Monster