A call spread is targeting AOL as as it bounces off lows.
optionMONSTER systems show that a trader bought 2,000 August 35 calls for $1.95 and sold 4,000 August 40 calls for their bid price of $0.45. The volume at each strike was more than the strike's previous open interest, so this is a new position.
The spread, also known as a ratio because twice as many calls were sold than were bought, is not hugely bullish. Its maximum gain would come if shares are right around $40 at expiration in mid-August. (See our Education section)
AOL is down 1.34 percent to $34.35 today, though off its worst levels of the morning. Shares of the Internet media company were above $37 last week and $42 at the start of May but remain above support at $34, which was tested going into this month.
More than 6,500 AOL options have changed hands so far today, more than 4 times its daily average in the last month.
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