VistaPrint (VPRT), the Netherlands-based provider of design and printing services, is up a nickel to $29.41 and a three-way spread is initiated when an investor apparently sold the Sep 27.5 – 35 strangle at 75 cents to help finance the purchase of Jan 37.5 calls at $1.10, 2400X so far. A similar spread traded Monday, 3150X, where the Sep 30 – 37.5 strangle traded at 85 cents and Jan 40 calls at $1.25. These positions look opening and seem to reflect expectations for rangebound trading through the September expiration, before rallying through mid-January 2011. Shares plummeted 36.3 percent when the company reported earnings on 7/29 and have remained under pressure ever since.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.