Delta calls outpace puts 10:1 as a bullish spread is opened
Delta calls outpace puts 10:1 as a bullish spread is opened. The stock up 10c to $48.42 and 8.6K Jan 50 calls bought for $2.20, 25K Jan 55 calls sold at 72c, and 8.6K Jan 60 calls bought for 20c. All three legs open and the payoff for the position is similar to a butterfly, with a max profit if shares settle at the middle 55-strike, but the risks are greater than a fly because not all of the short calls (body) are hedged with long calls (wings). Separately, 2K Oct 50 - 52.5, 1X2, call spreads on Delta trade for 33c. 5K Oct 50 and 7.5K Oct 52.5 calls traded total. Mar 43 puts and Jan 48 puts are next most active. Total volume is 2.5X daily average at 58K calls and 5.7K puts. Next earnings due mid-October.