ALLY Options Surge: $101K Call Spread Targets 42 Strike as Stock Breaks Out with 5.3% Gain
Click to View this Strategy in ALLY Option Chain Profit Calculator
A massive call spread trade just lit up Ally Financial (ALLY) options—1,156 contracts on the 40-42 strike, totaling more than $101,000 wagered. With ALLY up 5.31% on the day and technical indicators strongly bullish, what might traders be anticipating as the stock hits fresh highs?
High-Volume Call Spread Trade: Structure, Cost, and Profit Potential
On December 10, 2025, a notable 40-42 call spread was traded in ALLY options. The trade was executed for a volume-weighted average price (VWAP) of $1.75, moving up to $1.85 within the hour for an average gain of 0.10 or 5.7%. The profit came as the underlying stock climbed from a reference price of $44.07 to $44.59—a gain of $0.52.
| Details | Value |
|---|---|
| Options Expiration | 19-Dec-25 |
| Strike Prices | 40 - 42 Call Spread |
| Number of Contracts | 1,156 |
| VWAP Trade Price | 1.75 |
| VWAP Bid / Ask | 1.54 / 1.96 |
| Stock Price at Trade | 44.07 |
| Current Stock Price | 44.59 |
| Potential Maximum Profit | $14,000 (If above $42 at expiry) |
| Total Capital at Risk | $101,050 |
| Days to Expiration | 9 |
Want to analyze similar trades? Explore the multi-leg trade analyzer for details on multi-leg options strategies in ALLY.
Trade Objective: Quick Turn with Defined Risk, Low Break-Even Hurdle
This trade puts $101,050 on the line for a potential profit of about $14,000—a tight risk/reward setup, especially since the maximum profit occurs if ALLY closes above $42 by the December 19 expiry. Given the current stock price of $44.59, that target looks comfortably in-the-money, suggesting confidence in sustained short-term momentum.
Technical Indicators Strongly Bullish: ALLY Outperforming SPY on All Key Durations
ALLY's technical picture shows pronounced strength:
- Today’s gain: +5.31%, with the stock breaking above the expected daily resistance (43.14).
- Stock trades 11.9% above its 50-day and 18.3% above the 250-day moving averages.
- Outperformance vs SPY: In every major duration—from today, to two weeks, up to 1 year, ALLY has beaten the S&P 500 ETF.
| Duration | ALLY Return | SPY Return | ALLY Range |
|---|---|---|---|
| Today | +5.3% | 0.0% | 43.70 – 44.68 |
| 2 Weeks | +9.5% | +1.2% | 40.82 – 44.68 |
| 1 Month | +13.6% | +1.8% | 37.18 – 44.68 |
| 3 Months | +8.4% | +5.3% | 36.94 – 44.83 |
| 6 Months | +23.5% | +14.5% | 35.90 – 44.83 |
| 1 Year | +19.4% | +14.2% | 29.52 – 44.83 |
| YTD | +27.2% | +17.4% | 29.52 – 44.83 |
| 3 Years | +92.7% | +79.0% | 21.59 – 45.46 |
| 5 Years | +51.7% | +95.1% | 21.59 – 56.61 |
The uptrend across short- and long-term moving averages further reinforces the positive momentum. With shares breaking above recent resistance and now trading just above their 52-week high (44.58), the technical backdrop clearly leans bullish.
Option Skew Readings Add to the Bullish Sentiment
The 30-day implied volatility skew on ALLY currently ranks at 74% (out of 100%), signaling that the options market expects bullish movement relative to historical sentiment. This forward-looking indicator matches the current surge in both the stock and the options premium for bullish spreads.
Recent Share Repurchase Announcement May Have Fueled Optimism
Adding to the momentum, Ally’s board has just authorized a share repurchase of up to $2 billion. This buyback reflects management's confidence in future prospects and can serve as a catalyst for further upside, especially as supply tightens and investor sentiment climbs. You can read the full details on Ally’s announcement here.
Key Takeaways: Follow the Trade or Sit Out?
The large call spread buyer is betting big that ALLY’s strength will continue through next week’s expiry—profiting as long as shares stay above 42. With strong price momentum, technical indicators in clear uptrend, bullish skew, and a supportive corporate action in play, the data tilts in favor of this bullish outlook.
If you want to dig into more trades like this or search for similar opportunities, try the multi-leg trade screener to discover the latest option spread activity.
As always, keep in mind: past performance and trade size are no guarantee of future returns. But with data this strong, ALLY is one to watch closely in the coming sessions.
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