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Large Call Spread Trade in LYV Generates 19.2% Gain as Stock Jumps $1.68
A major options player just placed a bold bet on Live Nation Entertainment (LYV), scooping up a 1,500-lot call spread and racking up an early gain of 19.2%—all within hours. With LYV’s share price climbing $1.68 from the trade’s reference point, the options strategy is already paying off. But what does this trade really signal, and how does it line up with technicals and forward-looking option sentiment?
Trade Details: $157K for a Shot at $593K—How the Call Spread Breaks Down
| Detail | Value |
|---|---|
| Expiration | 21-Nov-2025 |
| Strikes | 140-150 Call Spread |
| Number of Contracts | 1,500 |
| Days to Expiration | 15 |
| VWAP Trade Price | 2.10 |
| VWAP Bid/Ask Price | 1.17 / 2.71 |
| Stock Reference Price | 136.32 |
| Current Stock Price | 138.00 |
| Spread Value at 11:15am | 2.50 |
| Early Gain per Spread | 0.40 (19.2%) |
See multi-leg trade details here
Call Spread Strategy: What Are the Potential Gains?
The buyer committed roughly $157,500 for this call spread, with a possible maximum payout around $593,000 if LYV closes at or above $150 by November 21, 2025. To achieve maximum profit, LYV must climb another $12 per share—well above both the trade’s entry and the current stock price.
This kind of spread structure often signals traders see limited but defined upside in the near term and want to express that view with controlled risk. The move in LYV—breaking past expected daily resistance at $137.21—gives this bullish bet an immediate head start.
Technical Indicators Are Bearish: LYV Remains Below Key Moving Averages
| Indicator | Current Value | Comparison |
|---|---|---|
| 20-Day Moving Avg | 151.86 | Stock 9.1% Below |
| 50-Day Moving Avg | 159.29 | Stock 13.4% Below |
| 250-Day Moving Avg | 143.55 | Stock 3.9% Below |
| Bearish Crossover | Short-term MAs below long-term | |
| Today’s Move | +2.38% | Broke Above Resistance ($137.21) |
| Change from Open | +2.7% | |
| 52-Week Range | 115.79–174.06 | |
Despite the jump today, LYV remains well under its 20-, 50-, and 250-day moving averages—a pattern described as a bearish crossover. Shorter-term underperformance against SPY further highlights near-term relative weakness. Still, breaking above expected resistance could hint at momentum building.
LYV Lags SPY Over Multiple Timeframes, But Delivers Over Long Term
| Duration | LYV Return | SPY Return | LYV Low | LYV High |
|---|---|---|---|---|
| Today | +2.4% | -1.0% | 133.54 | 139.42 |
| 2 Weeks | -11.6% | +0.5% | 133.54 | 157.99 |
| 1 Month | -11.7% | +0.3% | 133.54 | 159.19 |
| 3 Months | -8.3% | +7.2% | 133.54 | 175.25 |
| 6 Months | +1.4% | +19.7% | 131.65 | 175.25 |
| 1 Year | +17.3% | +17.6% | 112.88 | 175.25 |
| YTD | +6.6% | +15.4% | 112.88 | 175.25 |
| 3 Years | +95.1% | +83.8% | 64.25 | 175.25 |
| 5 Years | +144.6% | +100.9% | 53.15 | 175.25 |
In the short-term, LYV has underperformed the broader market, lagging SPY across most timeframes except the long-term (3 and 5 years) where returns are far ahead. This context may inform the calculated risk behind the large bullish options bet.
Option Skew Indicator Is Bullish: Implied Volatility Skew Ranks at 90%
Despite recent price pressure, LYV’s 30-day implied volatility skew stands at the 90th percentile of the past year—a reading interpreted as a bullish sentiment shift by Market Chameleon’s proprietary indicator. Such high skew typically indicates that the options market expects, or is protecting against, further upside.
Takeaway: While technicals have been weak, the notable skew, large call spread bet, and today’s sharp price action hint that sentiment could be shifting quickly. The trader behind the spread is risking defined capital for a defined upside—offering an intriguing perspective as expiration approaches.
Curious to dig deeper into other multi-leg trades and see what other bullish or bearish setups are materializing? Visit the multi-leg option trades screener for a real-time look at more strategies in LYV and beyond.
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NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
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Disclosure: This article was generated with the assistance of AI