Paper bought 8,000 WTW March 14 calls paying up to 2.00/contract & sold the 18 calls against it for .70.?
Weight Watchers International, trading 14.15 (up 1.54) with an IV30 of 145.16 and an HV10 of 83, is seeing a large bull call spread trade today.? The stock, with ADV of 10,600 and an OI of 164k contracts, saw a group of purchases of the March 14/18 call spreads.? Traders bought 8,000 of the March 14 calls paying up to 2.00 a contract and against it sold the 18 calls at .70.? Net the customer paid 1.30 for the 14/18 call spread.
This trade is a bet that WTW is going to be moving higher between now and much expiration.? WTW does have earnings on 2/25 so this activity clearly thinks that the earnings will be a net positive for Weight watchers.? Based on OI this is an opening trade, clearly a long play on WTW.
This trade should be considered bullish WTW and bullish volatilty.