A three-way spread tops today's option activity in NetApp as its shares bounce off three-year lows.
A trader bought 7,000 June 30 calls for $2.77 and sold 7,000 each of the June 35 calls for $1.32 and the June 22 puts for $1.45, according to optionMONSTER's tracking systems.
The trader is buying the call spread and using the put sale to exactly offset the cost. The trader then risks nothing if NTAP remains between $22 and $30. The maximum gains come if shares are at or above $35 at expiration while the trader faces the possibility of having to buy shares if they are below $20.
NTAP is up 3.84 percent to $27.34 this afternoon after trading as low as $26.26 yesterday, its lowest price in more than three years. Shares of the data-storage company were above $36 at the end of September.
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