Thursday, February 17, 2011

Weight Watchers (WTW) - Insider Trading?

On 2-14-2011 I wrote:
Weight Watchers (WTW) - Earnings Bet Is On

I wrote:
WTW will be announcing earnings 2-17-2011 BMO. I saw a large bet on the upside and felt it was worth a note.

The company has traded 6,635 contracts on total daily average option volume of just 371. All but 1 (one) contract has been calls. The action is in the Feb 45 calls where nearly 5,500 have traded (substantially purchases). The Stats Tab and Day's biggest trades snapshots are included (below).

Just to be clear -- the last time that many options traded in WTW was June of 2009. So, yeah, it's a big bet.

And today, after earnings...

The Feb 45 calls, bought for ~$0.90 and about 6,000x yield a $7 million gain in three days.

I'm not sayin'... I'm just sayin'...

This is trade analysis, not a recommendation.

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1 comment:

  1. Why were the calls so cheap? 1.80 straddle going into earnings? Deserve to get your face ripped off.