The OptionsHouse Hotlist scans unusual option volume during the trading day. This tool is available to all OptionsHouse customers, including those with virtual trading accounts.
Omnicare, Inc. (NYSE:OCR) is modestly higher today, keeping pace with the broader market. An enthusiastic spread trader expects considerable upside in the intermediate term, however, and traded this thesis by buying a large block of out-of-the-money bull call spreads today.
Just over an hour into the trading day, a large-scale investor bought nearly 5,000 of the March 25 calls and simultaneously sold 5,000 of the March 30 calls. The net debit for the spread was 63 cents each, or more than $300,000 in premium for this trade. These calls were traded to open, as open interest was minimal on both strikes heading into the trading day.
The most the investor can earn on this spread is $4.37 per spread (the difference in strikes less the premium paid). Maximum profit is achieved if OCR is trading above the 30 strike when the options expire in roughly 200 days. This would require a jump of more than 50% from the stock’s current level of $19.54. (more…)
In listening to the President speak yesterday – after he got the audio fixed- I couldn’t help but wonder if:
The recall drama isn’t over for Toyota Motor (NYSE:TM), which last week announced the recall of 1.1 million 2008 Corolla and Matrix vehicles, citing engine control troubles. The potential flaw may result in stalling, which is ironic given that the automaker’s recent high-profile recall dealt with unwanted acceleration.
I ended my 
The Hotlist, which scans unusual option volume during the trading day, is available to all OptionsHouse customers, including those with a 
Watching yesterday’s market action, I realized that we are indeed in a bearish trend. I noted this a week or so ago in my article referencing technical indicators that were 
