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…)
The Hotlist, a scan of unusual option volume, is available to all OptionsHouse customers, including those with a 
