An unusual call spread dominates today's option volume in communication-equipment company Arris Group.
optionMONSTER's Heat Seeker system shows that a trader bought 5,000 November 17.50 calls for the ask price of $0.65 and sold 5,000 October 17.50 calls for their bid price of $0.15. The previous open interest was below 1,000 contracts at each strike, so this was a new calendar spread .
The position cost $0.50, which is the most that can be lost before the first expiration. The trader is likely quite bullish on the stock but is looking for it to remain capped for the next two weeks. (See our Education section)
More than 10,300 ARRS options have traded so far today, compared to the daily average of just 924 in the last month. On Sept. 12 the Heat Seeker identified bullish call buying in the February 15 calls.
ARRS is up 0.82 percent to $17.11 this afternoon. It is on pace for the highest close since mid-April. Shares were down at support at $15.5 a month ago.
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