Lamar Advertising is at multiyear highs, and one investor thinks
the run will continue.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 4,100 July 48 calls for $3.05. Blocks of 2,050 contracts each
were sold in the July 50 calls for $1.90 and the July 55 calls for
$0.50. Volume was more than 75 times open interest at all three
The trade cost $758,500 to open and is highly leveraged to upside
in the billboard owner. It will break even if LAMR goes over $49.85
and earn a maximum profit of 143 percent on a move to $55. While
unusual on its surface, the strategy essentially consisted of two
, one between the 48 and 50 strikes and the other between 48 and
55. (See our
LAMR rose 0.73 percent to $47.99 in late morning trading, and is up
24 percent so far this year. The shares have been rising as an
improving economy draws money into media names. It's probably also
gotten a boost from CBS's decision to shift its billboards into a
real-estate investment trust. Other companies have gained on such
moves, which eliminate corporate income tax.
LAMR also peaked around $55 in mid-2007, and today's spread is
apparently looking for a move to that level.
Total option volume is 9 times greater than average in the session,
according to Heat Seeker. Calls outnumbered puts by a bullish
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