Air Products and Chemicals, Inc. (NYSE: APD) provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. The company operates through four segments: Merchant Gases, Tonnage Gases, Electronics and Performance Materials, and Equipment and Energy. Today a trader bought 10,000 APD Jan 2015 Calls for $4.10. Let’s breakdown this trade: this is a $4.1 Million bet APD can trade up to $135 by the end of 2015 with a break-even of $139.10. Anytime I see an order this large, I need to allocate some of my capital to this trade, so I just followed the trader into the same position:
The Trade: I bought the APD Jan 2015 135 Calls for $4.10
Risk: $410 per 1 lot
Reward: Unlimited
Break-even on Expiration: $139.10
Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long