Looking to sell today’s rip in Ultra Petroleum Corp. (UPL) as it seems overextended here. Looking for a pullback to the $46 area to take profits. If the position gets out of the gate solidly, we may hold until expiration for full credit as this is a June bear call spread. Implied volatility is extended as well so a pullback in IV would help the position. Setting a hard stop to limit risk to $300. At expiration the possible credit is $900 on risk of $2,100 so the trade offers a great risk/reward setup.
SOLD -6 VERTICAL UPL 100 JUN 10 50/55 CALL @1.50