BID – Sotheby’s – Shares of the auctioneer of authenticated fine art, antiques, decorative art, jewelry and collectibles shot up 7.05% in the first half of the session to touch an intraday high of $28.49. Investors expecting the price of the underlying stock to continue to appreciate through October expiration initiated bullish positions on the stock today. Plain-vanilla call buying took place at the October $30 strike where approximately 1,700 calls were picked up at an average premium of $1.35 apiece. Traders holding these contracts make money if the auctioneer’s shares rally another 10% to surpass the average breakeven price of $31.35 by expiration day in October.
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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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