CORRECTED Hefty five-way spread in Anheuser Busch as a bullish play is adjusted
CORRECTED Hefty five-way spread in Anheuser Busch as a bullish play is adjusted. Shares down 28c to $115.32 and, in the March term that expire this week, 10K Mar 110 calls sold at $5.30 along with 15K Mar 115 calls at $1. The 2X3 (or 1 X 1.5 at $3.80) likely closes a ratio spread, as the options expire in just a few days and the stock is trading slightly above the higher 115 strike calls. Now a new position is being opened in the May term: 30K May 125 calls for $1.17, 50K May 130 calls for 62c, and 20K May 135 calls for 32c. The strategy appears to be a 'shark fin' play, but we're hearing that all three legs were bought. If so, this new position, which captures earnings 5/9, expresses an aggressively bullish view for shares because the higher 135 strikes are well above Oct 2017 52-week highs of $126.02.