Weight Watchers (WTW) - Earnings Bet Is On
I wrote:
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WTW will be announcing earnings 2-17-2011 BMO. I saw a large bet on the upside and felt it was worth a note.
The company has traded 6,635 contracts on total daily average option volume of just 371. All but 1 (one) contract has been calls. The action is in the Feb 45 calls where nearly 5,500 have traded (substantially purchases). The Stats Tab and Day's biggest trades snapshots are included (below).
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Just to be clear -- the last time that many options traded in WTW was June of 2009. So, yeah, it's a big bet.
And today, after earnings...
The Feb 45 calls, bought for ~$0.90 and about 6,000x yield a $7 million gain in three days.
I'm not sayin'... I'm just sayin'...
This is trade analysis, not a recommendation.
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Why were the calls so cheap? 1.80 straddle going into earnings? Deserve to get your face ripped off.
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