Domtar Corporation (UFS) is a consumer paper goods manufacturer and distributor based in Montreal, Quebec. At the time of this post (11:00AM CST), UFS is currently trading at 44.87, up 2.87% on the day. The stock is currently within the lower-middle portion of its 52 week trading range of 33.04-57.88, though it has rallied to close higher the last five consecutive sessions since breaking out over the 40.00 resistance level on the daily chart on February 6th.
Earlier today a trader bought 1,189 UFS Apr 45 calls for $1.85. This order represents 19.5 times the average daily options volume in UFS. I bought some of these calls for $1.85 and have already taken a profit target in them at $2.00. UFS stock ripped to session highs as soon as this order hit the tape so there are many ways a trader could have traded it for profit. These calls have already traded as high as $2.15 today making this an extremely profitable trade in a very short amount of time.
Trade: A trader bought 1,189 UFS Apr 45 calls for $1.85
Risk: $185 per 1 lot
Reward: Unlimited
Breakeven: $46.85
Andrew Keene
President/Founder
KeeneOnTheMarket.com
