I do not know about you, but there is something about a Winnebago (WGO) - Get Winnebago Industries Inc. Report that just says "America" to me. Maybe it's because they are big, maybe it's because they are powerful or it could be because it's only in America that we would figure out how to combine the house and the truck!
What does this have to do with trading? WGO options are sparsely traded so when a trade goes up I take notice. A customer bought 1000 of the WGO Oct 7.5/10 call spread for $1.45. The company will announce earnings prior to October expiration and this play is bullish for the stock and collects premium, which is always a nice combo.
I would follow the customer and look to buy the WGO October 7.5/10 call spread for $1.45 with the stock around $9.05. If the spread falls below $1.00, I am out. I want to sell if the spread expands to $2.20, a return of 50%.
Trades: Buy to open WGO October 7.5 calls for $1.95, sell to open WGO October 10 calls at $0.55 or better.
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At the time of publication, Mark Sebastian held no positions in the stocks or issues mentioned.