Paper bought 11,050 EXPE March 120 calls for .84 & sold 13,500 March 130 calls at .10, net paying .74.?
Expedia Inc., trading 98.49 (down 3.66) with an IV30 of 55% and an HV10 of 36%, is seeing bullish call action today.? The stock, with OI of 69,000 and an ADV of 7300 contracts, saw a trader buy a large March call spread on a small ratio, likely tied to stock.? The trader bought 11,050 of the March 120 calls paying .84 and then sold 13,500 of the March 130 calls at .10, net paying .74.? With the ratio the number is closer to a .725 debit.? Additionally there was a lot of call buying on the 120s out right through the electronic system.
With EXPE reports on 2/10 after the bell, and the stock well away from highs, this could be a play on the stock turning it around.? With gas prices lower, this trader could be making a play that EXPE might have knockout earnings.? He or she is basically hoping the EXPE runs well above 120 between now and march expiration, a place it?s been as recently as January 5.
This trade should be considered aggressively bullish the underlying and volatility.