Large Spike in Vector Group Ltd (VGR) Options Volume

Vector Group Ltd (VGR) is a tobacco company. The company’s stock is currently trading around $21.50 in a 52 week range of $14.61-$21.85. The stock has been doing relatively well this year with shares of VGR rallying more than 31% year to date. Options traders seem to think this trend will continue as orders hitting the tape in today’s trading session have been decidedly bullish. Earlier this morning a trader bought 1,000 VGR Aug 22.5 calls for $0.55. This may not seem lie a large order but this block is the largest to trade on a day where VGR is seeing option volume nearly 15 times its average daily volume. With stock trading above the cloud and just off of its 52 week highs it seems likely that this trader is getting long VGR rather than hedging a short stock position. With a strong technical case and bullish order flow VGR could be setting up well for a long here.

My Trade: I bought the VGR Aun 22.5 Calls for $0.55
Risk: $55 per 1 lot
Reward: Unlimited
Breakeven: $23.05

James Ramelli

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