Earlier today Spring Corp. was trading at 8.78 dollars a share.? A customer bought 50,000 of the May 9 calls paying .62, which was tied to stock.? Additionally a trader bought a May 9/11 by 3 call spread, buying the 10,000 of the May 9 calls and selling 30,000 for .71? of the May 11 calls at .19.?
In both cases the trader bought the 9?s legging into some sort of straddle play.? It appears that both trader thinks the stock is going to move higher,? however,? one trader seems to think the stock is going to move somewhat quickly, the other thinks it will be a ?slow grind? to 11.? Although in percentage terms both would be big moves.
Traders looking to piggy back could consider an April 9/10 1 by 2 as a cheaper alternative.