LEA has a Date with $91

89 4 3
Lear Corporation manufactures, assembles, and supplies automotive seating, electrical distribution systems, and related components primarily to original equipment manufacturers across the world. I watch for Unusual Options Activity and I saw a HUGE Call buyer of the June 90 Calls for $2.10. Then I looked and the Open Interest of this line was over 51,000. This means that a trader has the right but not obligation to buy 5.1 Million Shares of LEA at $90 between now and June. With an order that is this large and the stock only trades about 80,000 Shares in a day, this is a perfect time to get long LEA, but I did this through Call Options. However, a trader sets up well to the long side:

The Trade: Buy LEA at $83.40
Stop Loss: $79.40
Target #1: $85.40
Target #2: $87.40
Target #3: $89.40
Target #4: $91.40

Once I get filled in target #2, if I want I can move my stop to breakeven.
Just bought 10 June 80/75 bull put spreads for a credit of $1400 with a risk of $5000 - my $1400 credit totaling $3600 in Risk. By simple Options standards I have a %72 percent probability of keeping my $1400 in profit. Taking into account the Unusual Options Activity you provide I'd say that puts me in the %90 + probability of keeping my $1400.

Now if I'm lucky enough to get a nice pullback to the $81 area I'll take my $1400 credit and buy $85 June calls giving me a risk of $5000 with HUGE upside potential..

Thanks for the info....
fcha ChrisMoody
Gosh, you are lucky!
Hit a new 52 week high today before bouncing back down. Interesting to watch over the next few days if it can break through and stay above that early december high.
Man....Your info is priceless....Thanks
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