3250 GNC Feb 30 calls were bought for 1.00 & 8125 of the Feb 32.5 calls were sold at .40.?
GNC Holdings, trading 27.27 (down .55) with an IV30 of 81.20 and an HV10 of 33.20, saw a ratio call spread trade today.? The stock, which has an ADV of 2350 and OI of 49,000 contracts, saw a trader buy 3250 of the GNC Feb 30 calls for 1.00 and then sell 8125 of the Feb 32.5 calls at .40.? The next of the trade is a 1 by 2.5 ratio call spread for even money.? This is likely a play designed around GNC earrings which are 2/11 before the market.
The trader is hoping GNC makes a move higher above 30 dollars a share; all the way up toward 32.50 dollars a share.? If the stock moves violently higher the trader is in danger of losing a lot of money as the stock runs above 34.
This trade should be considered bullish GNC and bearish volatility.