Credit Suisse Group AG (CS) is currently trading around $27.00 in a 52 week range of $21.01-$30.84. The stock has been performing relatively well this year with shares rallying more than 7.5% year to date. CS saw some interesting unusual options activity in today’s session and traders quick enough to follow it saw some very nice profits.
Early in the session a trader bought 1,100 CS Jun 27 Calls for $0.75. By the end of the day nearly 12,000 contracts traded on that line and nearly 5 times the average daily options volume in CS had come across the tape. The stock moved to the upside after these calls hit and the calls did as well. At the highs of the session these calls traded as high as $0.90 on the day making this a very profitable trade in a short period of time. With CS trading well above the cloud and showing other bullish momentum metrics it seems likely that this trend will continue.
Trade: A trader bought 1,100 CS Jun 27 Calls for $0.75
Risk: $75 per 1 lot
Reward: Unlimited
Breakeven: $27.75
This trade may not be an absolute blowout winner but a trader that bought a 20 lot of these calls would have profited $300 at the highs on $1500 in risk. That’s a 20% profit on risk in a matter of hours.
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