Weight Watchers (WTW) adds 76 cents to $77.56 and one strategist buys 3,000 April 75 puts on the stock for $4.60 and sells 5,500 April 67.5 puts at $1.70. The 3X5.5 ratio spread is possibly a roll up in strikes and maybe to hedge the stock after a 41 percent surge in shares so far in 2012. Levels of implied volatility in WTW is falling to new 52-week lows today, the day after the company reported earnings. Meanwhile, the stock is up against a resistance area between $77-78 oer share, which coincided with highs seen in Oct, Nov and January.
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.