Time to get LONG WWE

World Wrestling Entertainment, Inc. (WWE) is a media and entertainment company that provides content via television and internet in addition to its live events. The company’s stock is currently trading around $24.55 in a 52 week range of $8.37-$24.96. The stock has been massively outperforming the broader market and is higher by over 48% year to date. Options traders seem to think this trend will continue through the middle of the year as so unusually large options bets hit the tape today. Earlier in the trading session a trader bought 3,000 WWE Jul 30 calls for $1.50. This is a $450,000 bet that WWE stock rallies through July expiration. This block also represents volume 2.3 times the average daily option volume in WWE. WWE also has one of the best looking charts out there. The stock is trading well above the Ichimoku Cloud and has been not traded under the cloud since late January of 2013. With such bullish order flow and an amazing chart we believe that WWE signals well for a long here.

Trade: Buying the WWE Jul 30 Calls for $1.70
Risk: $170 per 1 lot
Reward: Unlimited
Breakeven: $31.70

James Ramelli

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