One investor thinks the tide may finally be turning for Central
optionMONSTER's Heat Seeker trade scanner detected the purchase of
7,500 October 7.50 calls for $0.36 and the sale of an equal number
of October 10 calls for $0.01. This is new positioning, as there
was no open interest at either strike before the transaction
It cost $0.35 to open this
, which will expand to $2.50 if the Czech broadcaster climbs to $10
on expiration. That would represent profit of 614 percent from the
shares less than doubling. (See our
section for more ideas on how to generate leverage using options.)
CETV is up 4.72 percent to $5.10 in morning trading. It is down
more than 95 percent from the peaks of late 2007 and is near the $5
level that's been support for the last four years.
Although its results have been consistently poor, the stock is up
today after the company said it may sell assets or renegotiate
suppliers. CETV trades for about one-third of its stated book
value, which could be leading some value investors to think that
it's too cheap.
Total option volume is 270 times greater than average in the name
so far today, according to the Heat Seeker. Not a single put has
traded so far.
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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