MetroPCS Communications fell yesterday, but traders were looking for a springtime rally.
optionMONSTER's Heat Seeker tracking program detected the purchase of 13,000 June 11 calls for $0.63 and the sale of an equal number of June 12 calls for $0.32. Volume was more than 20 times open interest at both strikes, indicating that new positions were initiated.
Known as a bullish call spread , it cost the trader $0.31, which is the risk if shares remain below $11 through that June expiration. The maximum potential gain is $0.69, or 223 percent, if PCS is above $12. According to the delta there is 28 percent probability that the stock will be above that upper strike at expiration.
PCS fell 1.31 percent to $10.53 yesterday. The prepaid wireless stock has been trading in a range since October, when they last traded above $12.
Some 38,000 contracts traded in the session, triple the daily average. Calls outnumbered puts by a bullish 6-to-1 ratio.
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