Takeover chatter has lifted Cablevision, and traders betting on
optionMONSTER's tracking programs detected two large transactions
in the cable-television stock today. First, traders sold 5,000
August 16 puts for $0.30 in volume far above the previous open
interest of just 159 contracts, clearly showing that this is a new
is now on the hook to buy CVC shares for $16 if they're below that
level on expiration. But above $16 he or she will keep the $0.30
premium as the puts expire worthless. (See our
section for more on the strategy, which makes money from the
passage of time
rather than a directional move.)
More option paper hit barely an hour later as traders gobbled up
7,300 August 19 calls, mostly for $1. Volume was more than 14
times previous positioning, indicating that new positions were
lock in the price where shares can be purchased, giving them
potentially significant leverage to a rally.
CVC is up 1.52 percent to $18.72 in early afternoon trading and has
gained 25 percent in the last week. Most of that surge was trigged
by a Bloomberg report that Charter Communications was considering a
takeover of the company.
Total option volume is more than quadruple the daily average so far
in the session.
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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.