Bullish March Vertical Call Spread Trades in OSPN Ahead of February 28th Earnings


IBKR Senior Trading Education Specialist

A trader bought almost 2,000 March 17’23 12.5/ 17.5 call spreads in OneSpan Inc. (OSPN) this morning at $1.50 taking a bullish position on the stock. At this price, the spread will show a profit (excluding commission and exchange fees) if the underlying trades above $14.00 prior to expiration and recognize the maximum profit for the spread of $3.50 (excluding commission and exchange fees) when the underlying trades at $17.50 or above. At the time of the trade the spread was approximately 50 delta representing buying almost 100,000 shares of OSPN.

OSPN is scheduled to report fourth quarter and fiscal year 2022 earnings on February 28th and has had mixed results over the past eight earning cycles of over and underperforming.

OSPN has had mixed results over the past eight earning cycles of over and underperforming.
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