Something is happening in Resolute Energy Corp. (REN), currently trading at 7.19 up .18.? A trader bought the September 7.5-12.5 call spread paying .70.? With a vol of 46% , the trade itself is a bullish bet that REN could rally as much at 66% by the September expiration.? One might question why the trader needed to sell the 12.50 calls at a .05.? Perhaps the trader wanted to pay less than 10% of the stock price on this play.
This trade should be considered bullish vol in REN and bullish the underlying.? Traders looking to piggy back should consider outrighting the Sep 7.5 calls for .75 or .80.? As a relative value play this is superior to the call spread.