Analyst sees bullish signs for Brunswick

NEW YORK — The website put out this statement on Brunswick Corp.:

“Bullish signs in Brunswick Corp. options caught our eye today with shares in the global manufacturer and marketer of boats and billiards tables trading 0.70% higher on the session at $24.37 just before 12:15pm in New York. Approximately 3,600 puts changed hands at the June $21 strike on paltry previously existing open interest of just 345 contracts at that strike. It looks like around 2,500 of the puts were sold at a premium of $1.00 apiece. Put sellers keep the full premium pocketed on the trade as long as shares in the largest publicly traded boat manufacturer exceed $21.00 through expiration day in June. Brunswick Corp. reports first-quarter earnings ahead of the opening bell on April 28, 2011, which is well in advance of June expiration. Investors short the puts will benefit from the effects of time erosion as well as subsiding levels of implied volatility. Put sellers could choose to buy back the puts at an advantageous price ahead of earnings, or maintain the bullish stance through June expiration.”

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