The St. Joe Company (JOE) is a real estate developer in Florida. The company’s stock is currently trading around $19.55 in a 52 week range of $16.82-$23.28. The stock has been relatively sideways this year with shares falling by only 0.26% year to date. Options traders are expecting the stock to move higher as orders hitting the tape today are decidedly bullish. Early in this morning’s session a trader bought 1,500 JOE May 20 calls for $0.325. This is a very bullish trade that will create the largest line of open interest at any strike in JOE. This block also represents the largest order to hit the tape in JOE on a day where options volume is 18 times the average daily volume. With shares of JOE breaking the Ichimoku Cloud to the upside it seems likely this trader is speculating on further upside rather than hedge against a short stock position.
Block Trade: A Trader bought 1,500 JOE May 20 Calls for $0.325
Risk: $32.50 per 1 lot
Reward: Unlimited
Breakeven: $20.325