Long
Trader Sees AGN Trading North of $142 by July
Allergan, Inc. operates as a multi-specialty health care company primarily in the United States, Europe, Latin America, and the Asia Pacific. This stock has been on fire and is breaking through the 52 Week highs. Today we saw a very interesting trade where a trader bought 1000 AGN July 140 Calls for $5.84 and then sold 1000 July 115 Puts to reduce the cost of the trade. This is known as a "Risk Reversal" and lets break this trade down a little more. A trader will get long 100,000 Shares at two different levels: $115 and $140. This trader has a breakeven of this trade at $142, but lets look at it a little bit in more depth.
The Trade: Trader bought 1000 AGN July 140 Calls and Sold July 115 Puts for $2.00 debit
Their Risk: $117,000
Their Reward: Unlimited
Breakeven: $142
Between $115-$140: Trader will lose Cash outlay of $200,000
Under $115 and Above $140, Trader will become Long 100,000 Shares of Stock
The Trade: Trader bought 1000 AGN July 140 Calls and Sold July 115 Puts for $2.00 debit
Their Risk: $117,000
Their Reward: Unlimited
Breakeven: $142
Between $115-$140: Trader will lose Cash outlay of $200,000
Under $115 and Above $140, Trader will become Long 100,000 Shares of Stock
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.