One investor wants to stick with American Realty Capital as the
shares rebound from a pullback earlier this month.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 4,293 January 12.50 calls for $1.80 and the sale of an
equal number of March 12.50 calls for $1.25. Volume was below open
interest in the nearer-dated contracts, which expire today, so this
appears that an existing
was closed and rolled forward in time.
Making the adjustment cost $0.55 and gives the investor an
additional 10 months of upside exposure with leverage potential
through the options. It also prevented him or her from being
assigned shares at expiration today. This way, the investor can sit
easy knowing that a rally won't be missed while limiting the amount
of capital at risk. (See our
ARCP is up 1.95 percent to $14.10 in afternoon trading. The owner
of retail buildings climbed about 20 percent between December and
early this month but has been falling in the last two weeks. It's
now attempting to bounce at its October highs, which could make
some chart watchers think that the uptrend remains intact.
Total ARCP option volume is triple its daily average so far today,
with calls outnumbering puts by more than 25 to 1. The stock also
long-term bullish activity
on Feb. 12.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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