Orbitz Worldwide, Inc. (OWW) is an online travel company that has operations around the globe. The company’s stock is currently trading around $8.25 in a 52 week range of $5.19-$13.26. The stock is up over 15% year to date despite the stock selling off more than 8% today on a downgrade from Goldman Sachs. Goldman downgraded the stock from neutral to sell but options traders seem to think the stock has fallen to attractive levels. Order flow in OWW has been decidedly bullish with more than 9.5 the average daily option volume already trading in the name. The biggest order to hit the tape today was from a buyer of the OWW May 10 calls. A trader bought 2,000 of the OWW May 10 calls for $0.35 when stock was trading $8.17. This is a very bullish trade and it would appear this trader is hoping OWW finds buyer at these levels. With shares still trading above the Ichimoku Cloud OWW could be setting up well here for an aggressive long.
Trade: Buying the OWW May 10 Calls for $0.35
Risk: $35 per 1 lot
Reward: Unlimited
Breakeven: $10.35