Seaspan Corporation (SSW) is an independent owner of containerships operating 67 ships. The company’s stock is currently trading around $22.45 in a 52 week range of $118.26-$25.10. The stock performed well last year with shares rallying over 19% in the past 12 months. Options action near the end of today’s trading session suggests that traders believe this trend in SSW will continue. A trader bought 1,332 SSW Mar 22.5 Calls for $0.70. This block represents volume over 6 times the average daily option volume in SSW. The stock is currently trading above the Ichimoku Cloud, but the future cloud is downward sloping indicating the stock is only moderately bullish. Although the stock is not technically trading in bullish territory we believe that an order of this size is more than enough signal for a long setup in SSW.

The Trade: Buy the SSW March 22.5 Calls for $.85
Risk: $85 per 1 lot
Reward: Unlimited
Breakeven: $23.35
Targets: Sell 25% at $1.00, Sell 25% at $1.20, Sell 25% at $1.50, Sell 25% at $1.75

Andrew Keene


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