Lamar Advertising Co., the bill board advertising company, was trading at 52.95 when a large 1-by-2 call spread trade went up in April? The customer bought the April 50 calls for 4.85 7500 times then sold 15,000 of the April 55 calls at 1.70,? net the customer paid 1.45 for the 1 by 2 call spread.?
This trade should be considered bullish the stock and bearish volatility.? The customer is betting that LAMR is going to rally over the next 40 days or so, at a somewhat slow rate and will top out well below 58.60 (about a 10% gain).? 1 by 2?s are usually executed by savvy customers so this should be one to watch.? Traders looking to piggy back the customer could consider a put sale on the 50 strike.