WHR – Whirlpool Corp. – Call options on the manufacturer of home appliances and products are in high demand today with the firm’s shares rallying as much as 3.9% this morning to touch an intraday high of $80.63. WHR’s shares surrendered the majority of earlier gains, but are still up 1.20% to stand at $78.51 as of 1:15 pm ET. Near-term bullish players itching for shares in Whirlpool to extend gains picked up approximately 1,000 calls at the September $80 strike for an average premium of $2.79 each. Investors long the calls are prepared to make money should the appliance maker’s shares increase 5.45% over the current price of $78.51 to surpass the average breakeven point to the upside at $82.79 by expiration day next month. Bullish sentiment spread to the higher September $90 strike where traders paid an average premium of $0.50 per contract to take ownership of some 1,700 call options. Call buyers at this strike rake in the dough as long as Whirlpool’s shares jump more than 15.25% to exceed the effective breakeven price of $90.50 ahead of September expiration. WHR shares traded above $90.50 as recently as July 20, 2010.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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