B/E Aerospace, Inc. designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets in the United States and internationally. BEAV is currently trading around $98.64 in a 52 week range of $60.47-$100.25. The company’s stock has been underperforming the market this year with shares falling year to date. Options traders were aggressively bullish last week as a trader bought 3206 BEAV May 90 Calls for $.70 debit on Wednesday April 30th, 2014. Let’s breakdown their risk and how they profited $2,670,000 or 1000% Returns in less than a week.

Yesterday a trader bought 3206 BEAV May 90 Calls for $.70 debit.
Cash Outlay: $69,600

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

Today these Calls are trading $9.00, so let’s look at their profit:

$9.00- $2.20 * 100 * 3206= $2,670,000

Full Disclaimer: I was long these Calls today and I have no position still on.

Andrew Keene


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