Bulls stick with 21st Century Fox

By David Russell,

Shutterstock photo

Twenty-First Century Fox has been climbing, and the bulls are sticking with the name.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 20,000 April 34 calls for $1.05 and the sale of an equal number of April 36 calls for $0.30 yesterday. A block of 10,000 April 33 calls was sold around the same time for $1.50, but volume was below open interest in those.

It appears the investor had a winning bet in the 33s, which he or she then closed and rolled up to a new bullish call spread while doubling the size of the position. Making the adjustment cost nothing and gives them the right to collect $4 million if the media stock closes at $36 or higher on expiration. (See our Education section)

FOXA rose 0.44 percent to $33.94 yesterday and is up 7 percent since reporting strong earnings last month. The Heat Seeker also detected buying in the July 36 calls on Feb. 24, and those calls have appreciated about 50 percent since the alert.

The stock peaked near $36 early this year, so yesterday's bullish spread is looking for a return to those levels. It bottomed under $31 by early February and has been rebounding since.

Total option volume was 32 times greater than average in the session, with calls outnumbering puts by more than 300 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: FOXA

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