EK has lagged the market recovery and continues trading below pre-crisis levels:
The trade:
Buy 10 Jan11 7.50 calls @ 7.50 cost = -1100
Sell 10 Jan11 7.50 puts @ 7.50 cost = +1700
This trade allows you to realize gains if the closing price in January is over 6.90. Should the closing price be below 7.50 shares of EK will be assigned.
