Dish Network has been taking a pause, but traders are looking
for the next leg higher.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of about 10,000 September 57.50 calls for $5.15 and the
sale of a matching number of June 57.50 calls for $2.05. Volume was
below open interest in the nearer-dated contracts, which indicates
that an existing position was closed and rolled forward in time.
Making the adjustment cost $3.10 and provides an additional three
months of upside exposure to the satellite-media company.
lock in the price where investors can buy a stock, letting
investors cheaply position for a move higher. In the case of
today's Dish trade, it's noteworthy that they're using
contracts that are
in the money
. (See our
DISH is down fractionally to $58.94 in afternoon trading. It's
roughly doubled in the last two years and is consolidating at its
highest levels since the tech bubble broke in 2000. The shares have
been pausing around $60 in recent months, and today's transaction
gives the investor more time for them to resume their uptrend.
Overall option volume is 10 times greater than average so far
today, with calls accounting for a bullish 71 percent of the
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