Cree, Inc. (CREE) manufactures LED, lighting, and semiconductor products for a wide array of applications. CREE is currently trading around $31.25 in a 52 week range of $27.25-$53.33. The stock has been relatively weak this year with shares falling by over 2.8% year to date. The stock is making a strong rally today with shares pushing higher by around 5%. This move higher CREE happened immediately after some very bullish unusual options activity hit the tape.

Early in the session a trader bought 1,000 of the CREE May 22nd Weekly 30.5 Calls for $0.43 when stock was trading $30.13. This alert was the first order to hit OptionHacker and the stock ripped higher after these calls hit the tape. Over 4,000 contracts have now traded on that line. CREE moved to session highs of $31.38 and these calls moved higher with the stock. These calls have now traded as high as $1.05 on the day making this trade a huge winner.

Trade: A trader bought 1,000 of the CREE May 22nd Weekly 30.5 Calls for $0.43
Risk: $43 per 1 lot
Reward: Unlimited
Breakeven: $30.93

This trade more than doubled in value over the course of an hour. If a trader would have bought a 20 lot of these options they would have seen profits of $1,240 at the highs on $860 in risk. This is another great example of hugely profitable weekly unusual options activity.

Andrew Keene

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