Delphi Automotive PLC (DLPH) is a manufacturer of vehicle components for worldwide automotive markets. The company’s stock is currently trading around $67.35 in a 52 week range of $40.78-$68.14. The stock has been very strong this year with shares rallying nearly 12% year to date. It appears that options traders expect this trend to continue as the order flow in URA during today’s session has been decidedly bullish. Earlier today a trader bought 1,530 DLPH Aug 72.5 calls for $2.15. This is a bullish trade being placed as the stock touches off of new 52 week highs. This block also represents the biggest order to hit the tape in DLPH on a day when more than 9.5 the average daily option volume has traded in DLPH. With shares just off of their 52 week highs we believe that this bullish order flow serves as a signal for a long position in DLPH.
My trade: I bought the DLPH Aug 72.5 Calls for $1.55
Risk: $155 per 1 lot
Reward: Unlimited
Breakeven: $74.05