Exelon (EXC) loses 29 cents to $40.30 and the April – May 42 call spread is bought at 35 cents, 8000X. Both legs look like new positions and have traded more than 10000 contracts. Shares of the Chicago-based diversified utility suffered a three-day 7.4 percent loss (ending on Mar 16) on concerns about the fallout from the Japan nuke crisis on the industry. Today’s spread trader might be looking for the stock to hold below $42 through the April expiration in 18 days and possibly trade higher from that point forward. Earnings expected around April 21 (unconfirmed) and the week after the April expiration.
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.