Bullish spread in General Dynamics as shares rally ahead of earnings
Bullish spread in General Dynamics as shares rally ahead of earnings. The stock up 3.3% to $182.90 and 3.7K May 180 - 195 call spreads sold at $5.05 to buy 5.1K May 190 - 205 call spreads bought for $1.57. The 3.7K May 180 - 195 call spreads apparently close a matching print from 4/3 when 3.7K bought for $1.29 with shares $167.75. The stock up 9% since that time and they're closing the vertical to monetize a $3.76 profit, or $1.4M on the 3.7K lot. Now a new larger position is being opened in the May 190 - 205 call spread and the vertical expresses a bullish short-term outlook for shares, as the max payout is on a 12% move to $205 or better over the next 24 days. Earnings due before the bell tomorrow.