The bulls want to have their cake and eat it too in McGraw Hill
optionMONSTER's Heat Seeker tracking program detected a flurry of
call volume in the company, whose businesses include Standard &
Poor's Ratings Services, Platts, and J.D. Power & Associates.
Almost all the activity focused on the November 50 calls and the
Roughly 5,800 contracts changed hands in each at the same time,
with the 50s sold for $15.35 and the 65s bought for $2.70. Volume
was below open interest at the lower strike, which suggests that an
existing position was closed and rolled higher.
lock in the price
where shares can be purchased, letting bullish positions be placed
cheaply and with limited risk. That seems to be exactly what
yesterday's investor did. The trader probably earned huge profits
in the 50s when the stock climbed, and now he or she is adjusting
it to the higher strike.
The investor collected $12.65 in the process and can benefit from
further gains. (See our
section for more on how options can be used to manage trades more
MHFI fell 0.5 percent to $65.59 yesterday. The stock is up 25
percent in the last six months and stands near its peaks at the
height of the credit bubble in 2007.
Overall option volume was 43 times greater than average in the
session. Calls accounted for a bullish 97 percent of the total.
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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