Profitable – I make money on this trade if SVU closes above $8.80 by April 20, 2012.
Break-even – I break-even on this trade if SVU closes at $8.80 by April 20, 2012.
Unprofitable – If SVU closes below $8.80, this trade will be unprofitable. The most I can lose is the amount I paid for the calls, $.80.
The reason I like this trade: Using unusual options activity once again, I saw a huge seller of SVU Jan 7.5 Puts for $.15. This could be a possible closing, but I think that SVU has more upside. I wanted to give this trade plenty time, so I bought the April calls. The stock is often in rumors of being bought as well Hence, I will be looking to take partial profits on a run up and possibly add on to the downside. Please feel free to email me with any questions regarding this trade at Andrew@KeeneOnTheMarket.com.
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