Those that think people don?t pay attention to Mad Money should pay attention to what is going on in CBI.? Yesterday Jim Cramer gave a ?big thumbs up? to CBI and the stock is up 1.15 today.? The IV is in the middle of its range.
A trader that was long the April 55 calls is cashing in today selling out of 10,000 calls.? He or she originally paid about 1.00 on Feb 1.? Today they were sold at 2.925.? The trader then used the proceeds to buy the July 60 calls for 2.30.
This is another case of locking in some profits while staying in the trade.? The trader is still long some of the April calls, so that spread may trade again and at a better price than a .60 vol debit.? I would not be surprised if it traded for a full 1.00 vol debit as the trader exits and rolls.